HMRC have finally backed down following the pressure applied from numerous professional groups relating to their proposed extension of the Disclosure of Tax Avoidance Schemes rules.
This has come as a relief to many, as even the most simple of inheritance tax planning - that being an outright gift to family members - would have needed to have been disclosed to HMRC under the extended regime proposed.
We now await how they propose to proceed with new regulations in due course.
HMRC has accepted the force of these criticisms, and has left the IHT hallmarks out of its latest revision of the DOTAS rules. 'Respondents were consistent in their view that the drafting of these goes too wide and risks catching ordinary IHT tax planning products that are not abusive', says the published summary of consultation responses. 'The government recognises these concerns. It remains committed to updating the IHT hallmark, but in a way that is tightly targeted and does not catch ordinary, non-abusive, tax planning.'