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Radical changes to Inheritance Tax (IHT)

Radical changes to Inheritance Tax (IHT)

A review of IHT by the Office of Tax Simplification was followed up in January this year by a report by the All-Party Parliamentary Group, both making recommendations for reform.

One of the most radical changes was removing the automatic re-basing of assets to market value for capital gains tax purposes on death. 

Another was the reforming of the current legislation for business (BPR) and agricultural (APR) property reliefs, which if not abolished completely would result in the tests to qualify for the relief made more difficult to achieve. If either of these changes were to be implemented, there would potentially be no benefit from holding onto assets and passing them on death. 

Therefore, you should consider whether lifetime gifting assets is appropriate now, particularly if you own assets currently qualifying for BPR and APR.