| Home > Tax News > Capital Taxes > CIOT responds to IHT consultation |
| CIOT responds to IHT consultation |
 |
 |
|
In its response to the consultation on inheritance tax (IHT) requirements for excepted transfers and settlements, which was launched by HMRC on 12 July 2007, the Chartered Institute of Taxation (CIOT) says that whilst it welcomes any improvement in the current system, the proposals do not go far enough in simplifying compliance. Under the self-assessment regime which applies to IHT, there is currently no penalty for failure to file an account when no tax is payable. In the original consultation document HMRC propose to impose a reporting requirement despite IHT not being chargeable.The Institute however, believes it would be simpler, consistent and logical to retain a reporting requirement only for circumstances where IHT is chargeable. The CIOT does, however, think that it is helpful for the Government to be aware of the amounts being settled in trust over certain de minimis limits, in order to inform future policy making. At present, form 41G provides basic information on thenature of the trust and the value and type of assets settled. Therefore, there is no need to have an IHT form as well where no immediate tax is payable. The Institute suggests that the form 41G is more widely publicised and made mandatory, since Trusts Offices do not always take a consistent policy. The consultation time limit has been severely criticised by the CIOT. This consultation was issued on 12 July 2007 and sought comments by the end of August. The HMRC Code of Practice (COP) requires a 12-week consultation period. The Institute acknowledges that pressing circumstances will sometimes require a shorter period, but the COP indicates that this should be the exception and should be avoided wherever possible. The COP also indicates that departments should consider giving a longer consultation period at certain times, for example during the summer holiday period. Given the subject matter of this consultation, there appears to be no justification for abandoning the normal time limits. Link Chartered Institute of Taxation: Response document
|
|||
|
About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
|||
|
Article Added Wednesday, 03 October 2007 | 1703 Hits |
|||
Tax Insider Lite
Each month our tax experts reveal FREE tax strategies to help minimise your taxes. Get Tax Insider Lite:
Tax Books
BOOK OF THE WEEK
Capital Allowances for Fixtures: The New Rules
BOOK OF THE MONTH
A-Z of Plant & Machinery
PROUDLY SUPPORTING
