TaxPersonal TaxCIOT welcomes ‘late election’ on inheritance tax

CIOT welcomes ‘late election’ on inheritance tax

Measure is good outcome to discussions with HMRC held over the past year

A Budget notice put out by HM Revenue
& Customs
that it will now accept late elections to pay inheritance tax
rather than a pre-owned asset
tax
(POAT) has been welcomed by the
Chartered Institute of Taxation (CIOT).

Emma Chamberlain, chair of the CIOT’s capital taxes sub-committee, said:
‘POAT is a complicated tax and people may not realise that they are caught by
it.

‘For example, it can apply if you sell a share in your house to a relative
even though no inheritance tax is saved. It can also affect those whose estate
is under the inheritance tax threshold of £285,000 and therefore don’t pay
inheritance tax at all because the limits for POAT are different.’

Legislation announced in the Budget mean that HMRC can in certain
circumstances accept elections made after 31 January 2007.

Further reading:

CIOT looking to raise phone problems with HMRC

CIoT warns of HMRC powers abuse

HMRC ups laundering monitoring

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