Government ministers have drawn up plans to crackdown on savers using IHT trusts to reduce their tax burden, The Daily Telegraph reports.
According to the report, policymakers are concerned that growing numbers of people are using trusts to reduce the amount of tax they pay after death.
It says HMRC plans to target IHT trusts through “accelerated payment notices”. The Revenue was handed the power to issue APNs – demands to pay tax within 90 days – in this year’s Finance Bill.
HMRC told the Telegraph it does not want the new laws to affect trusts or schemes that “are used legitimately in many arrangements by the vast majority of people”.
A spokesman for HMRC says “very small numbers” of wealthy people would be affected, with the focus on those who had taken “deliberate” action to avoid tax.