One sentence summary – Multiple sources within the highest level of government have indicated that there is growing consideration for reforms to inheritance tax, including potential cuts to the 40% rate and even complete abolition, although Downing Street has downplayed speculation and Chancellor Jeremy Hunt has warned that tax cuts are currently “virtually impossible” due to the state of the economy; while some Conservatives are calling for the tax to be scrapped, the opposition Labour party has raised concerns about funding and fairness, and Prime Minister Rishi Sunak is reportedly drawing up plans ahead of the general election.
At a glance
- There is growing consideration for reforms to inheritance tax.
- The tax is currently paid on estates valued over £325,000.
- Cabinet minister Grant Shapps has criticized the tax as “deeply unfair” and “punitive.”
- One proposal under consideration is a potential cut in the 40% rate payable on estates exceeding the threshold.
- Former Prime Minister Liz Truss and some Conservatives are calling for the tax to be scrapped, while the opposition Labour party has raised concerns about funding and fairness.
The details
Multiple sources within the highest level of government have indicated that there is growing consideration for reforms to inheritance tax.
This tax is currently paid on estates valued over £325,000.
There is a higher threshold for homes passed on to direct descendants.
Cabinet minister Grant Shapps has criticized the tax.
He described it as “deeply unfair” and “punitive.”
Shapps expressed support for lower taxes.
He also emphasized the need for fiscal responsibility.
One proposal under consideration is a potential cut in the 40% rate payable on estates exceeding the threshold.
There is also talk of completely abolishing the tax in the future.
However, Downing Street sources have pointed to Chancellor Jeremy Hunt’s warning.
Hunt warned that tax cuts are currently “virtually impossible” due to the state of the economy.
The majority of estates in the UK fall below the inheritance tax threshold.
Only 3.73% of UK deaths in the tax year 2020-2021 resulted in inheritance tax being payable.
This has led to calls from some Conservatives to scrap the tax altogether.
Former Prime Minister Liz Truss is among those calling for the tax to be scrapped.
However, the opposition Labour party has raised concerns.
They are concerned about how any changes to the tax would be funded.
They also question whether it would be fair.
Shadow Treasury chief secretary Darren Jones has written to the chancellor.
Jones is demanding answers on funding for any changes.
Prime Minister Rishi Sunak is reportedly drawing up plans to cut inheritance tax.
These plans are being drawn up ahead of the general election.
Discussions are taking place at the highest level of government.
Downing Street has downplayed speculation about specific plans to slash the tax.
Sources insist that formal plans are not currently being drawn up.
However, a senior government source has mentioned that political advisers have been exploring the possibility of abolishing inheritance tax.
This could potentially be part of the manifesto.
The proposal to reduce the 40% inheritance tax rate in the budget in March has been discussed.
Phasing out the levy has also been discussed.
The majority of estates in the UK fall below the threshold for incurring the inheritance tax charge.
Only 3.73% of UK deaths in the tax year 2020-2021 resulted in an inheritance tax charge.
As Westminster gears up for the upcoming general election expected next year, Rishi Sunak is also expected to promise to keep the triple lock on state pensions.
There are concerns about the cost of this promise.
Councils have been told to be prepared for an election in May.
Tory campaign chiefs have been developing local strategies for key seats.
They aim to replicate the success of the Uxbridge and South Ruislip by-election.
However, Labour currently holds a decisive lead in national opinion polls.
All the information presented above should be verified and cross-referenced with additional sources to ensure accuracy and comprehensiveness.
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| independent.co.uk |
|---|
| – A cabinet minister has criticized inheritance tax as “deeply unfair” and “punitive. |
| ” – |
| The government is reportedly considering cutting the inheritance tax. – |
| The tax is currently paid on estates worth over £325,000, with a higher threshold for homes passed on to direct descendants. – Discussions about reforms to the tax are taking place at the highest level of government. – |
| One proposal under consideration is a cut in the 40% rate payable on estates exceeding the threshold. |
| – There is also talk of abolishing the tax completely in the future. |
| – Cabinet minister Grant Shapps expressed support for lower taxes but emphasized the need for fiscal responsibility. – Downing Street sources have pointed to Chancellor Jeremy Hunt’s warning that tax cuts are currently “virtually impossible. |
| ” – The majority of estates in the UK fall below the inheritance tax threshold. |
| – Only 3.73% of UK deaths in the tax year 2020-2021 resulted in inheritance tax being payable. – Prime Minister Rishi Sunak is reportedly drawing up plans to cut inheritance tax. – Some Conservatives, including former Prime Minister Liz Truss, want to scrap the tax. |
| – Labour has questioned how any changes to the tax would be funded and whether it would be fair. |
| – Shadow Treasury chief secretary Darren Jones has written to the chancellor demanding answers on funding for any changes. |
| – Chancellor Jeremy Hunt has stated that the state of the economy makes tax cuts virtually impossible at the moment. |
| independent.co.uk |
|---|
| – Rishi Sunak is considering a cut to inheritance tax ahead of the general election. |
| – Downing Street has downplayed speculation about plans to slash the tax. – |
| There are live discussions at the highest level of government about reforming the tax. – |
| One proposal being considered is to phase out the levy by reducing the 40% inheritance tax rate in the budget in March. – Downing Street sources insist that formal plans are not being drawn up. |
| – A senior government source has stated that political advisers have been looking at abolishing inheritance tax as something that might go in the manifesto. |
| – Inheritance tax is currently levied at 40%, but the majority of estates fall below the threshold to incur the charge. – Only 3.73% of UK deaths in the tax year 2020 to 2021 resulted in an inheritance tax charge. – |
| There has been pressure within the Tory party to change or scrap inheritance tax. – Labour’s shadow Treasury chief secretary has criticized the proposal, calling it an unfunded tax cut. – Rishi Sunak is also expected to promise to keep the triple lock on state pensions, despite concerns about its cost. – Westminster is gearing up for the general election expected next year. – Councils have been told to be prepared for an election in May. – Tory campaign chiefs have been preparing local strategies for key seats. – |
| The hope is to replicate the success of the Uxbridge and South Ruislip by-election. – Labour currently has a decisive lead in national opinion polls. |
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