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The Office of Tax Simplification (OTS) has announced that over 90% of non-tax paying estates will no longer have to complete inheritance tax (IHT) forms for deaths every year, when confirmation is required.
The new simplified process for IHT forms will be common practice from 1 January 2022.
According to the OTS, some 50% of estates need to complete an IHT account in some form, despite fewer than 5% of estates paying any IHT.
John Bunker, chair of Chartered Institute of Taxation’s Private Client (UK) Technical Committee, said: “We welcome that, as part of the implementation of the OTS recommendations ‘to improve the customer journey’ for IHT many families in the aftermath of bereavement will be spared the additional stress of supplying unnecessary detail to HMRC.
“The change will mean that only around 15% of estates will need to complete some form of IHT return.”
He added: “The challenge for HMRC will be to design a process that meets that aim and is fit for purpose in only 9 months.”
