Inheritance tax

 


The controversial subject of how to tax inherited wealth was the subject of a lively CIOT/Institute for Fiscal Studies debate at the RSA which treated its guests to a history of inheritance tax and a comparison to the system used on the other side of the Irish Sea. An audio recording of the debate is available below.

When the seeds of the disclosure of tax avoidance schemes (DOTAS) régime were first sown the Government may have thought they included the acorn from which a mighty oak would grow. But since then the result, variegated by the general anti-abuse rule (GAAR) and follower notices and accelerated payment notices (APNs), has come to resemble an impenetrable thicket whose thorns now include heavy penalties for non-observance. The Government has even felt the need to include harsher penalties for non-compliance with the GAAR in the draft Finance Bill 2016 clauses despite no compliance failures having been recorded yet.