The burden of red tape on hundreds of thousands of grieving families will be eased, following a government announcement today.
Today’s announcement confirmed that reporting regulations will be simplified later this year so that from January 1, 2022 over 90% of non-taxpaying estates each year will no longer have to complete inheritance tax forms for deaths when probate or confirmation is required.
Inheritance tax (IHT) is charged at 40% on the value of an estate that falls above a certain threshold if a person has passed away, but many estates do not reach this threshold.
The move to reduce red tape for grieving families has been welcomed by Paul Lowery, partner and specialist in wealth protection at Reading-based law firm Boyes Turner.
“This announcement could benefit hundreds of thousands of families. It is estimated that pre-probate forms will not need to be filled out for more than 200,000 estates each year,” explained Lowery.
He went on to say: “Losing a relative or friend is always difficult. I welcome anything which will streamline the system and take the burden off people at such a challenging time. Today’s announcement from the government makes perfect sense for many estates which are required to complete and submit complex inheritance tax form even though they won’t have any tax liability.”