Inheritance tax cut

Kirkmain

Before the Autumn statement from Hunt, all the talk was about scrapping or at least lowrign inheritance tax. It was such a sure thing the BBC even ran an article about it;

https://www.bbc.co.uk/news/business-36014533

Then, nothing... how can the press be so sure that it was going to be cut, then not a word about it since?

p00hsticks

Not saying it happened in this particular case, but I think that a lot of these suggested budget changes are deliberately leaked to the press beforehand to gauge how they would be received by the general public. Discussions around IHT appear before every budget. 

As the report says, although IHT is unpopular, very few estates actually pay it.

Married couples leaving property to children have an IHT allowance of up to £1 million already, and much of their estate value is likely to consist of property that probably have largely benefited from a large passive increase in prices over the last few decades, rather than having been directly earned. 

So it could be argued that raising the allowances further, or scrapping IHT altogether,  would only be to the benefit of the very richest few at a time when tax breaks are needed most by the poorer in society who are most affected by the rising cost of living. 

Hoenir

Lots of social media chatter. Nothing official. 

Albermarle

Not saying it happened in this particular case, but I think that a lot of these suggested budget changes are deliberately leaked to the press beforehand to gauge how they would be received by the general public.

Yes and also how they are responded to by the media.

I remember a couple of Tory politicians squirming in their seats when asked how they could justify IHT cuts for the richest 4% of households, when there was a cost of living crisis.

As the jargon says 'the optics were bad ' and therefore the idea was dropped ( for now) .

Kirkmain

Albermarle said:

Not saying it happened in this particular case, but I think that a lot of these suggested budget changes are deliberately leaked to the press beforehand to gauge how they would be received by the general public.

I remember a couple of Tory politicians squirming in their seats when asked how they could justify IHT cuts for the richest 4% of households, when there was a cost of living crisis.

This is a lie that needs to be rectified though. Yes IHT is paid by 4% of estates. BUT these are not the "richest" 4%. The richest 4% pay no inheritance tax because they have long taken their assets offshore, used expensive accountants to transfer assets into trusts, moved abroad to die etc. etc..

MarzipanCrumble

Swedish perspective - abolished IHT:

https://iea.org.uk/blog/how-high-tax-sweden-abolished-its-disastrous-inheritance-tax

Note that Swedish tax rules may not be equitable with those in UK

whizzywoo

Unfortunately it is not always the richest who pay Inheritance Tax.  My Mother and Stepfather never married.  My Mother died several years ago and when my Stepfather dies we three children (of my Mother) will pay Inheritance Tax on the portion of the estate valued over the threshold.  Neither of them realised this would happen.  My Stepfather has no children of his own. 

My Mother was the youngest of a family of 11 children.  They were the poorest family on the poorest street in the town.  My Mother and Father worked hard all their lives.  My Father died young and my Mother lived alone until she met our Stepfather.  She couldn't bring herself to remarry but I'm darned sure would have done if she had known that we would cop for Inheritance Tax.

Floss

whizzywoo said:

Unfortunately it is not always the richest who pay Inheritance Tax.  My Mother and Stepfather never married.  My Mother died several years ago and when my Stepfather dies we three children (of my Mother) will pay Inheritance Tax on the portion of the estate valued over the threshold.  Neither of them realised this would happen.  My Stepfather has no children of his own. 

My Mother was the youngest of a family of 11 children.  They were the poorest family on the poorest street in the town.  My Mother and Father worked hard all their lives.  My Father died young and my Mother lived alone until she met our Stepfather.  She couldn't bring herself to remarry but I'm darned sure would have done if she had known that we would cop for Inheritance Tax.

That's what Sir Ken Dodd did - married Lady Anne shortly before he died so the IHT bill would be reduced.