Inheritance tax (IHT) is chargeable on the value of an estate of a person who has passed away, which falls above a certain threshold. The tax is set at 40 percent, meaning those who are left behind will have to deal with the levy before they can inherit assets left to them. In yesterday’s Budget, many were hopeful the Chancellor Rishi Sunak would announce the Inheritance Tax would be eradicated, or altered somewhat. However, some experts believed a rise to IHT would instead be on the cards.
Several Express.co.uk readers also commented on Inheritance Tax and the approach taken by the Government.
One wrote: “Scrap Inheritance Tax, but then those who inherit the assets should be taxed accordingly.
“If that means people lose their handouts, then so be it – for example if a person got cash, then that is taken into account.”
A second individual put forward: “It’s easier and cheaper to scrap IHT altogether. Other countries have done it and have not lost out on the tax take.
However, other Express.co.uk readers disagreed with the idea of abolishing Inheritance Tax.
Instead, some put forward alternative ideas on how the levy could be changed in the future by the Government.
One person stated: “Inheritance Tax should not be scrapped. Just raise the threshold to two million, due to inflation.”
A second said: “Inheritance Tax was originally intended only for the rich, so the tax threshold should be substantially increased.
“The loss of tax revenue could be made up by increasing stamp duty and property taxes on expensive properties, and double for owners who are not British individuals – for example, foreign people, companies and trusts.”
And a third simply wrote: “The Inheritance Tax simply needs reforming, not abolishing altogether.”
The Chancellor, yesterday, appeared to adhere to promises made in the Conservative manifesto.
He added that VAT and National Insurance would not be increased for Britons.