The Office for Tax Simplification have completed a review of inheritance tax and have recommended that fewer people should pay tax on gifts shortly before death. They propose reducing the 7 year rule to 5 years. They also suggest an overall personal gift allowance, but did not suggest an amount.

It is disappointing that they did not make any further recommendations or proposals. Inheritance tax rules are over complicated and as a Private Client Solicitor I would like to see recommendations in relation to the nil-rate band, the residence nil-rate band and the treatment of trusts. The proposals could go so much further to make significant changes to overhaul the system. 

The rules could be simplified to make inheritance tax less complex and therefore avoid confusion.