IHT schemes get the DOTAS treatment
Own up if you save tax. The last government introduced rules which force tax avoidance specialists to tell HMRC about tax-saving schemes which they market. The Taxman calls this notification procedure the “Disclosure of Tax Avoidance Schemes” or DOTAS for short. It’s not just a way for the Taxman to monitor what goes on, it means he can close down loopholes much sooner. But some taxes escaped the DOTAS treatment.
Feeling left out. For some reason Inheritance Tax (IHT) didn’t come within this regime, but at the end of July the Taxman opened consultation as to how it should be extended to cover it.
Advance warning. This move is certain to mean that some future IHT-saving schemes will have a shorter shelf life, before they are shut down by the Taxman. This could throw your tax planning into disarray.
Tip. If you’re considering an IHT-saving scheme, typically these are marketed by insurance companies or advisors, act sooner rather than later, as schemes sold when DOTAS applies to IHT may not last long.
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