View more on these topics

Frustration over failure to cut trust paperwork

The failure to increase the minimum reporting requirement for form IHT100, which deals with gifts made into trusts, has been branded a huge waste of taxpayers’ time.

Currently, if gifts of 10,000 or more are made into trusts, they must be declared on form IHT100.

Standard Life head of estate planning Julie Hutchison says HM Revenue & Customs indicated to the Association of British Insurers this summer that new regulation would be forthcoming in the autumn.

She says the industry had hoped for an increase in the minimum reporting requirement from 10,000 to 200,000 but the Chancellor has wasted an opportunity to reduce the regulatory burden.

She says: “The current paperwork is a waste of everybody’s time, both HMRC and the taxpayer. We need to get rid of unnecessary compliance which is creating headaches and additional costs in the advice process.”

The Government has said it hopes to save 400m by cutting its call centre costs by 25 per cent but Hutchison says these cost cuts will be counterproductive, with fewer civil servants to administer the forms and 12 pages of compliance on something that is not even taxable.

Worldwide Financial Planning IFA Nick McBreen says: “The sensible approach would have been to increase the limit on IHT100 and once again this is an example of the Chancellor being totally divorced from reality. The opportunity to make life simpler was wasted.”

Recommended

NU offers free cover for pipeline PTA cases

Norwich Union is offering free life cover to customers with pension term assurance policies which have been caught in the application process since the pre-Budget Report on Wednesday.The free cover will apply to those customers who have submitted applications for NU’s life insurance and mortgage life insurance with tax relief products and will be available […]

Restoring the public’s faith in MPPI

Whether you are an IFA, directly authorised firm or an appointed representative, selling mortgage payment protection insurance has certainly raised a few questions over recent months. Negative headlines in the press have done nothing to install confidence in either adviser or consumer when it comes to selling and buying MPPI. Although MPPI itself has not […]

Keep calm and carry on?

We British are known for our stiff upper lip and just getting on with things. It’s part of our quirky cultural behaviour – like forming orderly queues, or saying sorry when it’s not our fault. Many of us just aren’t that great at talking about what’s bothering us. But if someone feels that the stresses […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment