It is two years since the OTS put forward its proposals for reform of inheritance tax (IHT), when it made 11 recommendations, including simplification of lifetime gift exemptions and changing the scope of reliefs such as those for business property and agricultural property.

Following the high costs of supporting the economy during the pandemic, the annual £6bn plus income from inheritance tax is an important source of revenue and the freezing of thresholds and bands until 2025-26 means that the Treasury does not want to make any rule changes at this time.

A letter from the financial secretary to the Treasury, Lucy Frazer, states: ‘After careful consideration of your recommendations, the government has decided not to proceed with any changes at the moment, but will bear your very valuable work in mind if the government considers reform of IHT in the future’.

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