An “unprecedented” amount of people have called for a reform on inheritance tax, according to a review from the Office of Tax Simplification.
The report, published this morning by the independent adviser to the government, highlights the complexities arising from the reliefs, stating suggestions have been made about the interaction of the reliefs with the wider tax framework and potential distortions that may arise about the timing of transactions.
The largely negative feedback received show the difficulties bereaved families find when submitting forms, which can be more than 90 pages long in some instances, causing issues with obtaining probate.
The review details views from both advisers and the general public, including almost 3,000 responses to an online survey, 500 personal emails from the public and 100 formal written responses to a call for evidence. It comes after the chancellor asked the OTS to carry out a review of IHT and make recommendations on simplifications to the relief.
OTS chairman Angela Knight hopes the recommendations in the report will make it easier for the majority and would mean many in the future may not have to do the forms at all. “Improving the administration of this tax in these ways is important as having to deal with the current process can seem overwhelming to people at a time when they are both preoccupied and distressed.”