I have recently read a report suggesting that HMRC is considering plans to stop individuals settling up trusts to cut their Inheritance Tax bills. HMRC argue that such a change would ensure ‘fairness in the system’. I would argue that that in fact it gives the exact opposite!

This comes after recent reports that the Government collected £3.4bn in Inheritance Tax last year.

The proposed changes would restrict people putting property into a single ‘nil rate band’ trust. It is suggested that this move would most likely impact on the moderately wealthy, typically with estates up to £2m, who lack the options available to the wealthiest.

The proposal is yet a further example of the unpredictability of the tax system which makes it almost impossible for individuals to plan for the future.