HMRC re-writes IHT liabilities rules in tax avoidance fight

HMRC said that, currently, some schemes exploit the current rules which permit a deduction against the value of an estate for liabilities owed by the deceased, regardless of whether or not the debt is paid after death. Some arrangements involve contrived debts which are subsequently not repaid so there is no real reduction in the value of the estate; others involve loans used to acquire assets which are not chargeable to IHT, or which qualify for a relief, so that the value of the estate is doubly reduced. It said legislation would be introduced in the Finance Bill 2013 that will set ...