New rules lift burden of IHT reporting

Under the new rules, if the gift is of cash or quoted shares, the reporting limit is the IHT threshold (i.e. £300,000 for the current tax year). If the gift is another type of asset, for example an investment bond, the reporting limit is 80% of the IHT threshold, or £240,000 in 2007/08. The rules come into effect on 6 April 2008 but will be backdated to apply to gifts since 6 April 2007, a move that has been welcomed by Standard Life. Julie Hutchison, estate planning specialist at Standard Life, said: “I am delighted with the retrospectivity in these new rules, which means people who have...