Part IV: Inheritance Tax

1. Is there any need for an inheritance tax in addition to an income tax and CGT?  Ought IHT to be abolished?  If it were, ought there to be a charge to CGT on death?

2. What is IHT a tax upon?  Is it a tax on estates, or on inheritances?  Is it appropriate to tax on death at all?

3. To what extent is the structure of IHT affected by the fact that it is based upon the former capital transfer tax?  What are the main differences?  Which sort of tax is preferable?  Why?  Is either a wealth tax?

4. Is the UK approach to gifts with reservation of benefits and the taxation of owned, or formerly owned, living accommodation coherent?  Do the FA 2004 formerly owned assets provisions cast light on the distinction between income and capital?

5. Are the reliefs available under IHT too generous?

6. Is the nil rate band for IHT too low? Too high?

7. Should the IHT rates of tax be reduced?

8. What major IHT reform suggestions have the Office of Tax Simplification made and do you agree with them?

9. Which lifetime transfers are subject to IHT?

10. How is the charge to IHT on death calculated?  (Pay particular attention to the treatment of earlier lifetime transfers).

11. Is the ‘main residence nil-rate band’ a sensible idea?

12. Is it appropriate that the inheritance tax nil-rate band should be transferable between spouses and between civil partners?

13. What challenges do trusts pose in the context of levying an inheritance tax?

14. For the purposes of IHT, what should be the definition of “settlement”?  Should we use the same definition for both CGT and IHT?

15. Should different types of trust receive different IHT treatment?

16. Could (and should) there be a specific anti-avoidance provision to deal with what might be perceived as the abuse of trusts in the IHT context?

17. What administrative challenges are posed by the IHT and what can be done to minimise them?

18. What reforms would you make to the international aspects of IHT?