Calls have been made for the Office for Tax Simplification (OTS) to offer greater flexibility for gifting in the second half of its inheritance tax review next year.
The OTS released the first half of the paper in November, on instruction from chancellor Philip Hammond earlier this year over concerns the current inheritance tax system was "particularly complex."
The initial review advised the government should implement a "fully integrated digital system" for inheritance tax, ideally including the ability to "complete and submit a probate application."
Rachael Griffin, tax and financial planning expert at Quilter, said she hopes to see more flexibility on gifting during a lifetime in the second half of the review expected early next year.
Ms Griffin said: "The second half of the paper is likely to contain the meat of the technical policy change recommendations and we hope to see some simplicity on the reliefs offered and more flexibility for gifting during the lifetime.
"The OTS has an opportunity to find a smoother route for the public, removing unnecessary U-turns, stop signs and speed bumps."
Similar calls were made in October, from those hoping to see the inheritance tax gifting rules "dramatically simplified" in the Autumn Budget.
However, Ms Griffin cautioned any reform from the second, more "meaty" inheritance tax report must be proportionate.
She said: "IHT makes up less than 1 per cent of the total raised by the Exchequer and so would cover just one week's’ worth of the cost of tax relief on pensions.
"It’s undeniably an issue, but government have bigger and more expensive fish to fry."
rachel.addison@ft.com
