According to the BBC, the government is planning inheritance tax (IHT) increases at the Autumn Budget on 30 October.
The BBC suggested that Chancellor Rachel Reeves is planning an IHT raid as part of her plan to increase taxes and cut spending.
The BBC also hinted that the Chancellor and Prime Minister Keir Starmer are considering various changes to taxation, including changes to exemptions and reliefs.
IHT currently raises around £7 billion a year for the government. A 40% flat rate applies to any estate worth more than £325,000.
The Centre for Analysis of Taxation stated that the current IHT system is ‘broken’. In a paper published recently, the Centre said that uncapped exemptions mean a quarter of estates worth over £10 million pay a rate of 9%.
According to the Centre, allowances such as Business Relief and Agricultural Relief are generating ‘vast discrepancies’ in the amount of IHT paid by families.
25/10/2024
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10/11/2025
CIOT calls for IHT transitional gifting rule
The Chartered Institute of Taxation (CIOT) has urged the government to implement a transitional rule to allow older farmers and other business owners to gift assets to the younger generation free of IHT.
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