HMRC Clearances for IHT BPR
HMRC have confirmed that they are extending the clearance services for business owners relating to inheritance tax. In a further announcement HMRC also confirmed that they are also increasing the scope of the service.
This announcement follows an initial six month trial introduced from 1 May 2008. During this trial period, HMRC agreed to provide businesses with their view of the tax consequences of significant commercial issues in relation to inheritance tax business property relief. HMRC also committed to seek to reply to all clearance applications within 28 days.
From 23 January 2009 the trial period will continue indefinitely. The scope has also been increased to include HMRC’s view of the tax implications of a transfer of value. This concerns a change in ownership where there is an immediate inheritance tax charge. HMRC clearances under these circumstances will only remain valid for a period of six months.
Taxpayers who had an original application rejected as outside the scope of the clearance may ask for a review of the initial application if they feel this new extension warrants such a request.