HMRC has called for evidence into the use of deeds of variation (DoVs) for tax purposes (see www.bit.ly/1CDySxp). This follows the recent Budget announcement that the government is reviewing the use of DoVs for tax purposes to ensure that they are not being abused.
HMRC has published a call for evidence questionnaire with the aim of understanding what role the tax advantages play when a decision is made to vary a will by a deed of variation. The deadline for receiving responses is 7 October 2015. The government is also willing to meet interested groups as part of this call for evidence process (email ihtandtrustsconsult.car@hmrc.gsi.gov.uk).
Tim Stovold, tax partner with Kingston Smith, said: ‘It is clear now that deeds of variation, used perfectly legitimately to reduce inheritance tax, are squarely in HMRC’s sights. However, the circumstances where this planning is used will often be to rectify poor drafting and changes in family circumstances or intestacy, rather than to solely facilitate tax savings … No one is denying that deeds of variation are used in tax planning but, it is hoped that the government will accept that this is not aggressive or unacceptable tax planning.’
HMRC has called for evidence into the use of deeds of variation (DoVs) for tax purposes (see www.bit.ly/1CDySxp). This follows the recent Budget announcement that the government is reviewing the use of DoVs for tax purposes to ensure that they are not being abused.
HMRC has published a call for evidence questionnaire with the aim of understanding what role the tax advantages play when a decision is made to vary a will by a deed of variation. The deadline for receiving responses is 7 October 2015. The government is also willing to meet interested groups as part of this call for evidence process (email ihtandtrustsconsult.car@hmrc.gsi.gov.uk).
Tim Stovold, tax partner with Kingston Smith, said: ‘It is clear now that deeds of variation, used perfectly legitimately to reduce inheritance tax, are squarely in HMRC’s sights. However, the circumstances where this planning is used will often be to rectify poor drafting and changes in family circumstances or intestacy, rather than to solely facilitate tax savings … No one is denying that deeds of variation are used in tax planning but, it is hoped that the government will accept that this is not aggressive or unacceptable tax planning.’
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