The gift of protection

John Bunker and Kirstie Williamson consider how to best advise your clients on their options to mitigate their exposure to inheritance tax

In July 2019, the Office of Tax Simplification (OTS) released its second report on simplifying the design of inheritance tax (see  bit.ly/3qe8jsA). The report explores the main complexities and technical issues that arise from the way the tax works, making recommendations which could streamline gift exemptions, change the way the tax works in relation to lifetime gifts to make it both simpler and more intuitive, and address distortions in the operation and scope of reliefs such as those for business property and agricultural property.

Whilst none of its recommendations have yet been implemented, with the disruption of Covid-19 preventing any tax changes, they cannot be overlooked when advising clients on their options to mitigate their exposure to the tax.