The Government has proposed widening the disclosure of tax avoidance regime to include inheritance tax by requiring providers to disclose “new and innovative” schemes.
In a consultation on inheritance tax disclosure, published today, the Government says HM Revenue & Customs wants to be made aware of new schemes set up to mitigate inheritance tax, although existing schemes will be exempt.
The paper says: “In order to restrict disclosures to new and innovative schemes, the draft amending regulations contain a grandfathering rule that would exempt from disclosure any scheme of the same or substantially the same description as a scheme that was first made available for implementation before a given date.”
Fidelity International director of tax and trust planning Paul Kennedy says: “This widening of the disclosure regime brings inheritance tax within it for the first time. The Government is putting a line in the sand to say anything new and innovative that happens going forward we would like to hear about it before you get on and do it.”