A proposal to raise the threshold for reporting chargeable lifetime transfers will "significantly reduce" the IHT compliance burden for advisers, according to Skandia.
Under the HMRC proposals, the thresholds at which CLTs will need to be reported will be raised to £210,000 (70% of the nil rate band) and £255,000 (85%). Previously, the limits for the existing two tests were £10,000 for CLTs made in any one year and £40,000 for CLTs made over a ten-year period. HMRC is also proposing an additional third test against which the reporting thresholds would be measured. This test will be based on the value of the assets to be transferred. In addition, HMRC proposes to reduce the cumulation period for reporting purposes from ten years to seven years. Thi...
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