Estate tax reform back on the table as ‘groundwork’ done for Truss and Sunak | Personal finance | Finance
Inheritance tax is generally hated in the UK, with many viewing the levy as a “death tax” or restrictive on income before death. There have long been calls for the levy to be reassessed, with some calling for reform, while others say it should be scrapped altogether.
The tax has been a talking point in the Conservative leadership race, which has focused heavily on the potential for tax cuts.
Neither Rishi Sunak nor Liz Truss have fully committed to specific inheritance tax reform.
However, both contestants said they would revise the tax if they inherited Number 10’s keys.
One expert suggested this could indicate that inheritance tax will be on the political agenda in the coming months.
READ MORE: How your pension could help you reduce inheritance tax to zero
Some have suggested that inheritance tax is too complicated in its current state and could benefit from a change to an already familiar system.
Along the same lines, another argument is that inheritance tax should be reduced from its current rate of 40%.
This was supported by, among others, AAT, with Phil Hall, the group’s head of public affairs and public policy, stating: “By halving the very high overall rate, the incentives to avoid or evade will be deleted. This will likely increase tax levies. »
Other suggestions included increasing current allocations and strengthening the annual donation rules currently in place.
A UK Treasury spokesperson previously told Express.co.uk: “The vast majority of estates pay no inheritance tax – over 93% of estates are expected to have zero inheritance tax in the years to come. come – but the tax is rising by more than £6billion a year to help fund the public services that millions of us rely on every day.”