Tax updates: August 2015

In this month's tax updates, deeds of variation face overhaul in new consultation, mandatory DD for time to pay, direct recovery of debts in force, case reports on AEI Group permanent establishment, termination payments and tax liability in Flutter, and much more

IHT: deeds of variation (DoV) will be reviewed

The government has announced plans to consult on the future of deeds of variation (DoV) in a bid to clamp down on perceived abuse of the inheritance tax (IHT) system, following an initial announcement in the March Budget under the coalition.

Any deeds made on or after 1 August 2002 only have to be delivered to HMRC if they result in a change to the amount of tax due. As a result, HMRC has limited information about the use of DoV, particularly for purposes other than gaining a tax advantage.

If made within two years of death a deed of variation can result in a change to the amount of inheritance tax (IHT) or capital gains tax (CGT) due.

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IHT: deeds of variation (DoV) will be reviewed

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