Chancellor leaves inheritance tax untouched – Mortgage Finance Gazette
On the 22nd of November 2023, Dan Cooper made a post regarding the Autumn Statement of the same year.
The Chancellor of the United Kingdom, Jeremy Hunt, has decided not to alter the inheritance tax in the Autumn Statement. Instead, he focused on minimizing National Insurance and decreasing business taxes.
Hunt faced a lot of stress from certain MPs who wanted him to reduce the amount of inheritance tax. This tax applies to an estate that is worth more than £325,000, or £500,000 if it is left to a family member. It is set at 40%.
Only a small fraction of individuals have compensated for it, specifically pertaining to the demise of merely 4% of individuals from the year 2020 to 2021.
There was a lot of talk going around about the possibility of the chancellor lowering the payment rate that goes beyond the threshold. Some sources even suggested that it might be reduced by 50% to 20%.
Nevertheless, he has postponed making this determination, at least until the announcement of the Spring Budget.
Yesterday, our sibling publication Money Marketing noted that the administration is very likely to obtain the highest ever amount of Inheritance Tax (IHT) income for the third consecutive year.
According to the most recent news from HMRC, a total amount of £4.6 billion has been gathered between April to October within the financial year 2023/24.
The amount collected in the first seven months of 2022 has risen by 12% to £4.1bn.
According to calculations, if tax collection continues at its present pace, IHT will generate more than £7.8bn for the government. This is a £700m increase from last year's record high of £7.1bn.
Associated with: Fall Announcement estate tax
