IHT News Roundup: January 2025

Your monthly summary of inheritance tax news, court cases, and planning developments.

HMRC Guidance Updates

HMRC published updated guidance on:

  • Valuing crypto assets for IHT purposes
  • Treatment of overseas property in estates
  • New IHT400 form with enhanced digital features

Notable Court Cases

Smith v HMRC [2025]: Important ruling on whether rental property qualifies as a business for business property relief purposes. The court ruled against the taxpayer, confirming that passive property rental rarely qualifies for relief.

Planning Trends

January saw increased interest in:

  • End-of-tax-year gifting strategies
  • Life insurance policies in trust
  • Pension beneficiary reviews ahead of 2027 changes

IHT Collections

Provisional figures show IHT receipts for December 2024 at £680 million, bringing the year-to-date total to £6.1 billion - 12% higher than the same period last year.

Coming Up in February

  • HMRC webinar on business property relief
  • Updated probate fee structure comes into effect
  • Deadline for 2023/24 deed of variation registrations

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