The government have announced that, following recommendations by the Office of Tax Simplification, they are looking at ways of reducing inheritance tax reporting requirements. The government has now agreed to simplify the position so that, from 1 January 2022, over 90% of non-taxpaying estates each year will no longer have to complete inheritance tax forms for deaths when a grant of representation is required.
They have also confirmed that the current temporary provision for those dealing with a trust or estate to provide an inheritance tax return without requiring physical signatures from all those involved will be made permanent.
Reporting regulations where the deceased was never domiciled in the UK but owned indirect interests in UK residential property will also be updated to clarify the requirement for such estates to submit an inheritance tax account.
These changes are certainly welcome, both to reduce the administrative burden on Executors at an already distressing time and to meet the challenges of those dealing at a distance. Although these changes will be appreciated, careful consideration of a deceased’s inheritance tax position at the date of their death will still be required – and it will be for the Executors to decide whether they can fall within these rules, or what their obligations are.
For advice on lifetime inheritance tax or assistance with the position after someone has passed away, please contact our dedicated Later Life Planning team.