Partner James Cook has written an article in Tax Journal on the Government’s potential reforms to Inheritance Tax (IHT) and proposals to cap lifetime gifting.
He warns that introducing a fixed lifetime allowance or charge could create significant practical and financial challenges for families, business owners and farmers who rely on existing exemptions to transfer wealth efficiently. A new regime, he explains, could trigger liquidity pressures, accelerate tax liabilities and undermine confidence in long-term succession planning.
From a practical perspective, the ‘noise’ coming from the Government and Treasury should encourage practitioners to: review their client’s existing PET strategies, consider liquidity on death (particularly for farmers and business owners); maintain detailed records of their client’s gifting; and potentially consider the introduction of greater flexibility into their estate planning (for example, the use of discretionary trusts, family investment companies, alphabet shares and staggered share transfers).
The full article is available to read online at Tax Journal.
About James
James advises on estate and succession planning, wills, probate, trusts, tax-planning, lasting powers of attorney, enduring powers of attorney and Court of Protection matters. His work often includes international elements whereby he advises both UK and non-UK clients.
Get in touch
If you would like to speak with a member of the team you can contact our private client solicitors; Holborn office +44 (0)20 3826 7522; Kingston office +44 (0)20 3826 7529 or Putney office +44 (0)20 3826 7515 or complete our form.
