*Update* A Call for Evidence has now been published by the OTS and includes a question on the charitable IHT relief.

HM Treasury has published a letter sent by Chancellor of the Exchequer Philip Hammond to the Office of Tax Simplification (OTS), acknowledging the complexity of the current Inheritance Tax (IHT) regime, and calling for the the OTS to undertake a review to ascertain how it might be simplified.

The Chancellor has specified that the review should include a focus on the technical and administrative issues within IHT, such as the process of submitting returns and paying any tax due, as well as practical issues around routine estate planning and disclosure. He has also suggested that it could look at how current gifts rules interact with the wider IHT system, and whether the current system causes any distortions to taxpayers’ decisions around transfers and investments.

For more information on how Inheritance Tax affects charities, click here.