Consultation on disclosure of IHT avoidance

Although the original disclosure of tax avoidance schemes (DOTAS) legislation contained in FA 2004 included IHT within the scope of the taxes which could be made subject to the scheme disclosure rules regulations have never been laid requiring disclosure of schemes giving rise to an IHT advantage.

That is now set to change as a result of HMRC becoming aware last year of two schemes involving the avoidance of the 20% IHT entry charge on the transfer of property into trusts where the value exceeds the IHT nil rate band. Those schemes were legislated against in FA 2010 ss 51 and 52 but HMRC thinks that there could be further IHT trust schemes out there of which it is unaware. Hence it intends to bring schemes which seek to transfer property into trusts while avoiding the 20% IHT entry charge within...