Proposals for inheritance tax to be paid before death

Inheritance tax is often referred to as the 'death tax', but if a proposal is taken up by the government it could become just another one of the taxes we pay during our lifetime.

The new proposal would allow HM Revenue & Customs (HMRC) officers to ask for payment of inheritance tax by people while they are still alive, but a spokesman has attempted to reassure that the power would only be used if there were "deliberate" actions by a wealthy person to avoid paying inheritance tax. The plan is aimed at clamping down on schemes designed to allow wealthy people to reduce their inheritance tax bill, and the HMRC says that it would not effect trusts and schemes that are used "legitimately".

Concerns have been raised that if the proposal was adopted the new powers could be used aggressively in the same way the HMRC has recently tackled tax avoidance.

If you require advice in respect of inheritance tax, capital gains tax, income tax, or general tax planning, contact Wilson Nesbitt in Belfast or Bangor by calling 0800 840 9288.