Fewer families to complete Inheritance tax forms
The Chartered Institute of Taxation (CIOT) has welcomed the announcement today that from 1 January 2022 over 90% of non-taxpaying estates each year will no longer have to complete inheritance tax (IHT) forms for deaths when probate or confirmation is required.
The Office of Tax Simplification (OTS) said, in their first report on IHT, that about 50% of estates need to complete an IHT account of some form, even though fewer than 5% of estates pay any IHT.
John Bunker, Chair of CIOT’s Private Client (UK) Technical Committee, commented:
“We welcome that, as part of the implementation of the OTS recommendations ‘to improve the customer journey’ for IHT many families in the aftermath of bereavement will be spared the additional stress of supplying unnecessary detail to HMRC.
“The change will mean that only around 15% of estates will need to complete some form of IHT return.
“The challenge for HMRC will be to design a process that meets that aim and is fit for purpose in only 9 months.”