Inheritance Tax could be the first tax to rise as the Government looks to claw money back following the financial support for individuals and businesses during the Covid-19 pandemic. We shall have to hope that any increase isn’t in line with measures brought in after World War 2 when inheritance tax was eventually increased to 80%!
Inheritance tax brings in around £5.5bn per year and the current threshold of £325,000 which has been in place since April 2009, has resulted in an increase pf 67% since 2009 to the number of estates paying inheritance tax.
A consultation is currently ongoing looking at reforming the tax, and follows a report back in 2019 by the Office of Tax Simplification.
This is likely to be one of a number of tax increases as the UK begins to grapple with the task of repaying the huge debt created by Covid-19
