Financial Times: risks if changes to lifetime tax gifts occur, warns Lynne Rowland
The Office of Tax Simplification (OTS) has recently recommended a reform of inheritance tax (IHT) to mixed responses. Alongside the suggested shortening of the “seven-year rule” to five, the OTS has advised changes to gifting allowances, due to the ambiguous rules surrounding them. There are both benefits and drawbacks to this advised change, especially regarding affluent families, as tax partner Lynne Rowland touches upon.
“It’s quite tough to get on to the housing ladder these days and often the only way families have to accelerate that [for younger generations] is to give them lifetime gifts. If there’s an absolute limit on how much they can give, I suspect they will limit their support as they will be hit with more tax.”
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Lynne’s comments appear in an article in the Financial Times (behind a pay wall).