An inheritance tax tool could soon disappear as part of a Government clampdown.
An invaluable tax planning tool that has enabled families to avoid large inheritance tax charges for generations could soon disappear as part of a Government clampdown, according to Kent legal firm Furley Page.
The firm says that, during George Osborne’s budget speech, he announced plans to take forward a “…review on the avoidance of inheritance tax through the use of Deeds of Variation” by this autumn. Furley Page solicitor Joshua Williams is warning that could mean time is running out for beneficiaries to take advantage of them.
“Tax avoidance is not the same as tax evasion,” explains Mr Williams.
“The critical difference is that tax evasion is the illegal practice of not paying taxes by not reporting income, reporting expenses not legally allowed, or by not paying taxes that you owe. Tax avoidance, however, is a completely legitimate way of managing your tax affairs to ensure you pay the lowest tax possible. A Deed of Variation is one example.