Inheritance Tax – Minor measures

Wed 25 Nov 2015

Following lots of discussion and debate in recent years regarding the reform of inheritance tax (IHT), only a couple of minor points arose in the autumn statement.

First, following a number of changes over recent years extending the exemption from IHT for members of the armed forces whose death is caused or hastened by injury or illness suffered while on active duty to members of emergency services responding to emergencies, The government will now introduce a further IHT exemption in respect of certain compensation and ex-gratia payments for World War II claims. The legislation will apply to deaths on or after 1 January 2015.

The second announcement relates to deeds of variation. Following George Osborne’s remark at the March 2015 Budget that deeds of variation would be reviewed (which many believed was a joke at Ed Miliband’s expense) the government has now announced that they will not introduce new restrictions on how deeds of variation can be used for tax purposes. They have, however, advised that they will continue to monitor their use. Deeds of variation can be useful IHT planning tools as they allow assets to be redirected by the beneficiary within two years of death without any further IHT or capital gains tax consequences (this can relate to gifts under a Will or on intestacy).

For more information, please contact:

Adele Swaine Adele.Swaine@mazars.co.uk

Zoe Peck Zoe.Peck@mazars.co.uk

Derek Carter Derek.Carter@mazars.co.uk

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Inheritance Tax – Minor measures

Inheritance Tax – Minor measures

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