Is the chancellor planning an inheritance tax raid?

Financial advisers are advising that British families and expats with UK assets may need to take immediate measures. This is to mitigate any hike in inheritance tax in the forthcoming Budget.

There is mounting speculation that the Chancellor of the Exchequer, Rachel Reeves, is planning to target inheritance tax, capital gains tax and pensions tax, which could all feature in the forthcoming fiscal announcement.

As part of its election commitment to ‘plug the hole in the public finances’, the government has vowed not to increase any taxes on ‘working people’ such as VAT, income tax or National Insurance, while also promising not to raise corporation tax.

This suggests other taxes will be in the firing line, with Inheritance Tax (IHT) very much in the mix.

IHT is currently levied at a rate of 40% on estates worth over £325,000. Renowned think tank The Resolution Foundation estimates that the number of estates impacted by IHT will double as house and asset prices rise, unless there is a some form of announcement on reforming the tax.

If you are inheritance tax planning in Cheshire or elsewhere in the UK, and are concerned about whether you may be affected by the Budget, it’s generally advised to act now and not leave it too late. Contact us at Hartey Wealth Management today to find out how to protect your wealth by maximising the current rules to your advantage, helping you and your family to have a more secure financial future.

Share:
Recent Posts

You may be interested in