HM Revenue & Customs is expected to increase the limit on inheritance tax reporting for certain types of gifts from £10,000 to £200,000. Currently any gifts over £10,000 require a lengthy report to be completed and sent to HM Revenue and Customs.
It would still mean that gifts of £10,000 or more into a flexible of discretionary trust since 22 March 2006 would have to complete the current form IHT100 and IHT100a. The increases have been welcomed as the amount of paperwork involved created huge burdens for all parties, the taxpayer, the adviser and HM Revenue and Customs.
Our view
This would appear sensible as it will reduce burdensome paperwork.