Rishi Sunak plots new inheritance tax raid next month! ‘Nothing is ruled out'

HM Revenue & Customs is already collecting more inheritance tax (IHT) from bereaved families than ever before, with revenues hitting a record high after breaking through the £6billion barrier for the first time. That’s £1billion more than a year ago, a rise of almost a fifth. Soon they could climb even higher.

Rishi Sunak has already increased the inheritance tax (IHT) burden once this year, in his Budget on 3 March.

He froze the nil-rate band at £325,000 until 2026, five years away. This means every year more families will get sucked into the IHT net as house and share prices rise.

Sunak also froze the main residence nil-rate threshold on family homes at £175,000, again until 2026.

Now he may come back for more when he unveils his three-year Spending Review and Autumn Budget on October 27.

© Getty Sunak

AJ Bell analyst Tom Selby said inheritances may prove too juicy a target for the cash-strapped Chancellor to resist.

One option is to increase the 40 percent IHT rate that currently applies to all family assets that fall above the nil-rate thresholds.

Many already believe this tax rate is punitive, so any increase would cause an outcry.

Selby said the Chancellor may prefer to lower the nil-rate threshold instead, so that people start paying inheritance tax much sooner, say, on assets totalling £200,000 or £250,000.

READ MORE: State Pension age must fall! Why retire later if dying younger

Sunak has another option. “He could raise money and simplify the system by scrapping the £175,000 main residence nil-rate band on family homes,” Selby said.

This complex tax charge has come into criticism for making the IHT system even more confusing, so the Chancellor could sell this as part of HMRC’s tax simplification efforts.

“The main residence tax break looks quite generous in the context of a pandemic which has ripped a significant financial hole in the Treasury’s finances.”

Sunak will be considering all of his options, including a combination of several measures. “I don’t think you can rule anything out at the moment,” Selby added.

The Chancellor risks destroying his popularity in the process and could meet opposition from Boris Johnson.

“Boris knows any move to increase IHT will be deeply unpopular with traditional Conservative voters,” Selby added.


‘Fraudster conned me out of £64,000. My bank refused to help’ [WARNING]

State Pension age reduced to 63! Your income if retiring early [GUIDE]

Health and social care pensioner levy won’t count for State Pension [REVEAL]

© Getty Budget box

Mark Giddens, partner at accountancy firm UHY Hacker Young, echoed Selby’s warning that families risk forking out more of their wealth to HMRC via inheritance tax.

“IHT was original supposed to affect only the super-rich but is now increasingly hitting middle England.”

Sunak is under huge pressure. “The pandemic has led to record peacetime borrowing, and the Treasury will be looking to balance the books any way it can.”

Giddens urged families to start IHT planning now to ensure they can pass the fruits of their labour to their children.

Internet Explorer Channel Network
News Related


Billie Jean King: 'Ons Jabeur is living the dream the Original 9 had 51 years ago'

© Provided by The National Ons Jabeur, left, with Billie Jean King after receiving a signed copy of the American’s autobiography, ‘All In’. Photo: @BillieJeanKing via Twitter When Billie Jean ... Read more »

Scotland plans rocket launch from UK's first space port next year

© Provided by The National The Prestwick space port in Scotland will offer a horizontal launch pad and is expected to begin operations in 2023 or 2024. Photo: Prestwick aerospace ... Read more »

Marketmind: Inflation expectations are soaring

A look at the day ahead from Tommy Wilkes. © Reuters/Wolfgang Rattay FILE PHOTO: Customers at the food discounter ALDI buy groceries, as the spread of coronavirus disease (COVID-19) continues, ... Read more »

UP Elections: In Akhilesh Yadav-Om Rajbhar Alliance, Asaduddin Owaisi Could be the Loser

© Provided by News18 UP Elections: In Akhilesh Yadav-Om Rajbhar Alliance, Asaduddin Owaisi Could be the Loser The alliance between the Samajwadi Party (SP) and the Suheldev Bharatiya Samaj Party ... Read more »

'A success of India and the success of every countryman': 10 best quotes from PM Modi's address to nation

© Provided by Firstpost ‘A success of India and the success of every countryman’: 10 best quotes from PM Modi’s address to nation Prime Minister Narendra Modi addressed the nation, ... Read more »

Courts backlog will remain a problem for many years, report warns

The backlog of cases waiting to be dealt with by criminal courts will “remain a problem for many years”, severely affecting victims, Whitehall’s spending watchdog has warned. The number of ... Read more »

Logan Mwangi: Three charged over death of five-year-old found in river

The mother and step-father of a five-year-old boy whose body was found in a river in south Wales last week have appeared in court. Logan Mwangi, also known as Logan ... Read more »

TTD releases special entry darshan tickets for Tirumala temple

The Tirumala Tirupati Devasthanams (TTD) has released the online quota of its Rs 300 special entry darshan tickets for the Tirumala temple on its official website. The tickets for special ... Read more »

Chhattisgarh: 26 ITBP jawans fall ill after consuming food at camp in Rajnandgaon

In a suspected case of food poisoning, 26 personnel of the Indo Tibetan Border Police (ITBP) fell ill with after consuming meal at their camp in Chhattisgarh‘s Rajnandgaon district, officials ... Read more »

AAP, BJP, Cong used fake FB accounts to influence Delhi polls narrative: Whistleblower

Facebook whistleblower Sophie Zhang, a former data scientist with the company, has claimed that fake accounts were used during the 2020 Delhi Assembly election by AAP, Congress and BJP to ... Read more »

Fire in Mumbai Highrise, Man Seen Falling from 19th Floor

© Provided by News18 Fire in Mumbai Highrise, Man Seen Falling from 19th Floor The 19th floor of a highrise in south Mumbai caught fire on Friday. In a video ... Read more »

Laut Gegnern der Pflegeinitiative gehören Löhne nicht in Verfassung

© KEYSTONE/GAETAN BALLY Die Pflege-Initiative schiesse über das Ziel hinaus, argumentiert ein überparteiliches Komitee Nein-Komitee. So gehörten etwa die Löhne für eine Berufsgruppe nicht in die Verfassung. Dem Nein-Komitee haben ... Read more »

West Bengal Lottery Result 2021: Dear Bangabhumi Ajay Result for October 22 at 4 PM; Here's How to Check

© Provided by News18 West Bengal Lottery Result 2021: Dear Bangabhumi Ajay Result for October 22 at 4 PM; Here’s How to Check The West Bengal State Lottery Department will ... Read more »

Maharashtra TET exam 2021 postponed, to be conducted on November 21

Maharashtra State Council of Examination has postponed Maharashtra TET Exam 2021. The Maharashtra Teacher Eligibility Test will now be conducted on November 21, 2021. Candidates can check the official notice on ... Read more »

SC issues notice to Twitter ex-India MD on UP govt plea

© Provided by The Statesman SC issues notice to Twitter ex-India MD on UP govt plea The Supreme Court on Friday issued notice to former Twitter MD Manish Masheswari on ... Read more »

Petrol Price Today Rises for Third Day, at all-time high across India; Know Fuel Rates

© Provided by News18 Petrol Price Today Rises for Third Day, at all-time high across India; Know Fuel Rates Petrol and diesel prices shot up for the third consecutive day ... Read more »

Arsenal XI vs Aston Villa: Predicted lineup, confirmed team news, injury latest for Premier League today

© ES Composite ArsenalPredictedXIAubav1.jpg Arsenal will assess the fitness of several stars ahead of tonight’s quick Premier League turnaround against Aston Villa. Mikel Arteta would not name all the players ... Read more »

How Muhammad Ali inspired Manchester United star Paul Pogba

Paul Pogba has taken the opportunity to praise the work of boxing legend Muhammad Ali as he celebrates Black History Month. The Manchester United star has explained how his approach ... Read more »

Former Wolves chief named as 'surprise contender' for top Newcastle United job

Ex-Wolverhampton Wanderers chief Kevin Thelwell is reportedly a contender to become mega-rich Newcastle United’s new sporting director. The Magpies have become the richest club in the Premier League after the ... Read more »

Arsenal vs Aston Villa prediction: How will Premier League fixture play out tonight?

© PA Wire Dean Smith takes Aston Villa to Arsenal on Friday (Naomi Baker/PA) – PA Wire Mikel Arteta wants to see an improvement from Arsenal in terms of their ... Read more »

Tiga sahabat gagahi industri muzik, pertaruh “Way Up”

© Provided by Free Malaysia Today (Dari kiri ke kanan) Khai Zhen, zeauk dan CLARY, tiga artis bebas yang bakal melancarkan single terbaru mereka, “Way Up”, hari ini. (Gambar disediakan ... Read more »

Richardson to focus on red ball cricket

Star WA paceman Jhye Richardson will be held back from one-day duties for the short term to allow him to build a case for a dream Ashes call-up. © Richard ... Read more »

World's biggest solar farm in the NT to export energy to Singapore

© Provided by Daily Mail MailOnline logo A remote part of the Northern Territory is set to become the world’s biggest solar farm – and transmit power to Singapore through ... Read more »

Fire escape used in Tas quarantine breach

A coronavirus-infected NSW man who escaped hotel quarantine in Tasmania, sparking a three-day lockdown, likely left via a fire escape when guards were changing their personal protective equipment. © PR ... Read more »

Australian customers using buy now pay later schemes could soon be slugged a fee

Consumers who use buy now pay later schemes including Afterpay and Zip Pay could soon be slugged a fee to use the increasingly popular payment method in line with a ... Read more »

Salaam Cricket 2021: T20 cricket has energised the longer formats, says Sunil Gavaskar

T20 cricket has energised the longer formats of the game and is good for promoting the sport, former India and Pakistan captains Sunil Gavaskar and Wasim Akram have said. Gavaskar ... Read more »

‘They Consider Virat Great Player, Rohit Even Greater': Shoaib Akhtar Says Pakistan Holds ‘Good Narrative' About India

© Provided by News18 ‘They Consider Virat Great Player, Rohit Even Greater’: Shoaib Akhtar Says Pakistan Holds ‘Good Narrative’ About India Former Pakistan pace legend Shoaib Akhtar has been pretty ... Read more »

Knife attack in Earlsfield leaves man in serious condition with stab wounds

© PA Archive Police Stock A man was stabbed during a knife attack in Earlsfield on Thursday. The 22-year-old was found with a stab wound and taken to a London ... Read more »

First 15 finalists for Miss Universe UAE revealed

© Provided by The National One of the 15 finalists in the Miss Universe UAE competition. Photo: Miss Universe UAE The first round of finalists for the inaugural Miss Universe ... Read more »

HIV-positive people ‘fearful' of therapists as critical NHS mental health failings exposed

Public mental health services in the UK are failing to adequately support people who are living with HIV due to a lack of knowledge and understanding about the virus, a ... Read more »

Mumbai cinemas reopen after 18 months as life swings back

Health workers celebrate with vaccine beneficiaries India administering 1 billion doses of COVID-19 vaccine, at Rajawadi hospital in Mumbai, India, Thursday, Oct. 21, 2021. India has administered 1 billion doses ... Read more »

Squid Game viewers accuse Chinese streaming giant Youku of copying hit Netflix show

Viewers have accused Chinese streaming giant Youku of plagiarising Netflix’s hit series Squid Game. The allegations came after promotional material for Youku’s new variety series Squid’s Victory was released. As ... Read more »

Real Madrid's chances of signing £64m striker fading, Pep Guardiola makes contact

Real Madrid’s chances of landing Borussia Dortmund forward Erling Braut Haaland are reportedly fading with the entrance of Manchester City and Paris Saint-Germain to the race. The two clubs are ... Read more »

Laaksonen in der 2. Runde ausgeschieden

© KEYSTONE/ANTHONY ANEX Der Schweizer Tennisprofi Henri Laaksonen (ATP 99) scheitert beim ATP-Hallenturnier in Antwerpen in der 2. Runde am 20 Positionen besser klassierten Amerikaner Brandon Nakashima. Der 29-jährige Schaffhauser ... Read more »

BUSINESS LIVE: Retail sales fall; Sainsbury's dumps bank sale plans; Evergrande shares dive on reopening

© Provided by This Is Money MailOnline logo UK retail sales dropped by 0.2 per cent in September, adding to signs of weakness in the recovery and bucking economists’ expectations ... Read more »

Chipmangel trifft Branche: Renault schätzt Produktionsausfall auf halbe Million Autos

Der französische Autobauer Renault schätzt den Produktionsausfall wegen des Chipmangels in diesem Jahr noch deutlich stärker ein als bisher. Schätzungsweise 500’000 Fahrzeuge würden dieses Jahr nicht wie geplant vom Band ... Read more »

Timo Meier präsentiert sich in bestechender Verfassung

© KEYSTONE/AP/Jeff Chiu Timo Meier bleibt in der NHL in Form. Beim 2:1-Sieg seiner San Jose Sharks gegen die Ottawa Senators gelingt dem Appenzeller die Vorlage zum 1:1 Anfang des ... Read more »

Brian Laundrie: FBI confirm remains of Gabby Petito's fiancé found

The FBI has identified human remains found in a Florida nature reserve as those of Brian Laundrie, the missing fiance of murdered travel blogger Gabby Petito. © via REUTERS FILE ... Read more »

Capela und Hawks gewinnen zum NBA-Saisonauftakt deutlich

© KEYSTONE/AP/Hakim Wright Sr. Den Atlanta Hawks glückt der Auftakt in die NBA-Saison. Das Team des Genfers Clint Capela gewinnt das Heimspiel gegen die Dallas Mavericks mit 113:87 und unterstreicht ... Read more »

What is PUBG: New State's minimum specifications?

PUBG: New State is the latest battle royale game for Android and iOS devices. It will be released globally on Nov. 11. © Provided by Dot Esports Unlike PUBG Mobile ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic