Simplifying IHT Charges on Trusts - CIOT comments

By Technical Team on 30 Aug 2013

The second consultation on simplifying IHT charges on trusts was published on 31 May. CIOT comments, sent to HMRC 30 August 2013, are available below.

Areas that HMRC have identified for simplification or possible reform include:

  • Simplifying the calculation of IHT trust charges including the consideration of charges on certain death in service pension schemes;
  • Major proposals are to split the NRB between the number of settlements created by the settlor and a flat 6% rate for periodic and exit charges;
  • Standardising the treatment of accumulated income so that income is deemed to have been accumulated if it remains undistributed from the start of the second tax year after the end of the tax year of receipt; and
  • Aligning filing and payment dates for ten yearly and exit charges with the Self Assessment framework.

The consultation document can be found at and below in Adobe (PDF) format.

The CIOT response to this consultation is also available below in Adobe (PDF) format.

Technical Team
30 August 2013

Posted in: Submissions