You are here: Home - News -

Tyrie criticises ‘complex and incomplete’ IHT rules

by:
  • 08/12/2015
  • 0
Tyrie criticises ‘complex and incomplete’ IHT rules
Recent changes to inheritance tax rules are ‘complex and incomplete’, according to chairman of the Treasury Select Committee Andrew Tyrie.

In a letter to the Chancellor George Osborne, Tyrie welcomed the announcement of a residence nil rate band (RNRB) for inheritance tax made in the summer Budget, but said the means by which it was being introduced and uncertainty it had caused were undesirable.

The inheritance tax-free threshold will be raised to £500,000 per person up from £325,000, allowing a combined threshold for married couples of £1m from 6 April 2020.

However, the new nil rate band will only apply to main residence and direct descendants of the owners. In addition, only homes inherited after 6 April 2017 are likely to be eligible for the changes.

Tyrie raised concerns that the rules were not ‘simple, fair and clear’ as should be required. He said the draft Finance Bill which is due to be published later this week, should address problems but noted there was a danger of adding ‘even more complexity’ to the process.

He said: “I do not advocate any particular approach. But the complexity of the proposal, as it currently stands, appears very unsatisfactory…The sooner policy can be brought to a more stable resting place, the better – in the next Budget at the latest.”

Tyrie said it was ‘unreasonable’ for older people to be forced to wait a year while the rules are written and passed into law. The main beneficiaries of such uncertainty would be tax advisers and lawyers, he added.

“Those facing the already difficult decision to move out of their family home and either downsize or move into residential care, should not have the worry of such uncertain tax law,” Tyrie said.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Jackie Uhi
Mortgage fees tariff is a victory for common sense – Barclays

Greater clarity in mortgage fees is due to be introduced by way of a standardised tariff for charges. Jackie Uhi...

Close