The Chancellor has recently written to the Office of Tax Simplification (OTS) to request a review of Inheritance Tax (IHT). The review is expected to include the technical and administrative requirements of IHT, practical issues surrounding routine estate planning, and how the current gift rules interact with the IHT rules.

A scoping document for the review has also been published. The OTS will publish a call for evidence in due course.

The overall aim of the review will be to identify opportunities and develop recommendations for simplifying IHT from both a tax technical and an administrative standpoint. The OTS will work alongside HMRC’s project on administrative changes for the vast majority of estates where there is no tax to pay.

Following the review, the OTS aims to publish a report in autumn 2018 that:

• Provides an initial evaluation of aspects of the current IHT regime, and what they mean for taxpayers, HMRC and the Exchequer;
• Identifies opportunities for simplification of IHT supported by analysis and evidence; and
• Offers specific simplification recommendations for government to consider.