HMRC raises IHT reporting level to £200k

Under current rules, if a person makes a chargeable lifetime transfer, including into flexible or discretionary trusts, this has to be reported to HMRC for IHT purposes if the amount exceeds £10,000, or if there have been a number of transfers over the past 10 years which amount to £40,000. As a result, most gifts, particularly to these types of trust, need to be reported, although this reporting is not relevant for gifts which are made direct to another person or where it is to a bare trust for an adult. Concerns had been raised about the level of the reporting limit as, although the ...