Inheritance Tax Regulation Change
Published / Last Updated on 04/04/2008
Inheritance Tax Regulation Change
Inheritance Tax reporting regulations have changed with regard to the reporting of financial gifts. You probably did not even realise that cannot give your money away without reporting it.
Our view
We applaud the publication of new Inheritance Tax regulations which are set to simplify the compliance and reporting involved for many lifetime financial gifts. The new rules will take effect tomorrow on 6 April 2008, with a retrospective start date of 6 April 2007.
Previously, chargeable financial gifts transfers over £10,000 had to be reported to HM Revenue and Customs, amounting to 12 pages of compliance irrespective of tax due. Under the new rules, if the gift is of cash or quoted shares, the reporting limit is the IHT threshold. If the gift is another type of asset, then the reporting limit is 80 per cent of the IHT threshold.
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