Govt urged to simplify IHT rules amid Johnson’s appointment as PM

Saga Money CEO Jeff Bromage has called on the government to simplify inheritance tax (IHT) rules after describing them “as clear as mud”.

The rules surrounding IHT have widely been described as excessive and overly-complicated, meaning that many consumers do not have a clear understanding of the tax.

Commenting, Bromage said: “The regulations surrounding IHT are, in short, as clear as mud. The tax levied on a pension pot which has been passed on, the time limits affecting the tax on ‘gifts’ and the various structures which can be implemented to mitigate inheritance tax are not only confusing but can cause a huge degree of unnecessary upset for grieving friends and relatives,” he said.

However, following the appointment of Boris Johnson as the new Conservative leader and Prime Minister, Bromage has urged government to take advantage of this “unique opportunity” to simplify the system “once and for all”.

“We believe that the promised review of the current IHT rules, combined with the pending appointment of the new Prime Minister, presents the Government with a unique opportunity to simplify this system once and for all,” he added.

The Saga Money CEO pointed towards the fact that a majority of adults (63 per cent) have not written a will, nor do they intend on conducting estate planning to mitigate their IHT (56 per cent). Without the government stepping in to create a new, simpler system, the amount that families are losing in “unnecessary” tax is only going to increase.

“We are urging the Government to conduct a total overhaul of the IHT system as soon as possible in order to deliver greater clarity and peace of mind for consumers when they need it most,” he concluded.

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