In a new monthly feature, John Endacott looks at recent developments affecting the taxation of private clients, which this month include debate on replacing the 50% tax rate and possibly more property based taxation.
A tax credit would be more progressive than the government’s proposal to levy a lower rate of inheritance tax where the deceased leaves a charitable legacy of 10% or more of their estate, the ICAEW Tax Faculty said.
Ian Maston outlines how the IHT business property relief rules apply to groups of companies and similar structures
Hugo Webb explains why IHT can be an unexpected issue for the buyer in the context of a share sale, and what can be done about it
HMRC’s consultation document ‘A new incentive for charitable legacies’ has been amended to correct an error in example 7 on page 20.
HMRC are seeking views on a proposal to apply a reduced rate of inheritance tax to estates that include charitable legacies of at least 10% of the value of the net estate.
For deaths on or after 6 April 2012, such estates will pay IHT at 36% instead of the main rate of 40%.
HMRC have published a reminder that the disclosure regime for avoidance schemes is extended with effect from 6 April to require the disclosure of inheritance tax arrangements that seek to avoid IHT charges associated with transfers of property into trust.
The Inheritance Tax (Delivery of Accounts) (Excepted Estates) (Amendment) Regulations, SI 2011/214, amend the excepted estates regulations, which set out the circumstances in which a person is not required to deliver an inheritance tax account to HMRC of the property comprised in the estate of a