TAX NEWS

RISHI SUNAK CONSIDERING AN INHERITANCE TAX CUT

Rishi Sunak is reportedly considering an inheritance tax cut as he attempts to woo voters and create dividing lines with labour, who are comfortably ahead in the polls.

The plans would make way for the eventual scrapping of the levy which has been reported by The Sunday Times however, Downing Street has sought to play down speculation that the Prime Minister was drawing up plans to cut the tax.

At present, inheritance tax is charged at 40% for estates worth more than £325,000, with an extra £175,000 allowance towards a main residence if it is passed to children or grandchildren. Amongst the proposals under consideration, is for Sunak to reduce the 40% rate in the March budget, paving the way to abolish it in the future.

Downing Street sources insisted that the formal plans were not being drawn up and pointed at the chancellor Jeremy Hunt's insistence that the tax cuts were "virtually impossible' given the state of the public finances.

Let's see how this develops in the coming months leading up to the budget and a possible early general election........