In those letters, HMRC pointed out that Brexit campaign gifts did not qualify for any inheritance tax exemption, so were chargeable lifetime transfers with tax payable immediately. Defending those letters, the chancellor promised to consider whether a change of law was necessary (although he expressed a reluctance to backdate any such change).
So there we have it. It seems that one of the improbable effects of Brexit has been to usher in a review of IHT.
Anything which can be done to create a tax based on 21st-century policy aims, to simplify the legislation, to reduce the need for ordinary families to have to engage in complex tax planning, and to reduce the burden of administration will be welcome. While I very much doubt that we will see the fundamental review which is necessary, it is good to travel hopefully. When the terms of reference are published I will be scrutinising them in detail.
George Bull is a senior tax partner at RSM
