“Real issue” around inheritance tax, says chancellor
Chancellor of the Exchequer Sajid Javid has revealed that he is considering reducing inheritance tax during a speech at a Conservative party conference fringe event.
Javid said that potential cuts to the tax were “something on my mind” having said there is a “real issue” surrounding the current regulations.
He also confirmed that a Budget would take place before the end of 2019.
Javid was speaking at a fringe event at the Conservative party conference in Manchester, hosted by the Institute of Economic Affairs and the Taxpayers’ Alliance.
He had been asked about scrapping the inheritance tax, which requires that estates worth over £325,000 be liable to taxation at a rate of 40 per cent, the only exception being if the deceased leaves all assets above that threshold to their living spouse.
Fewer than 25,000 estates are liable for the tax each year, but ten times more than that have to undergo the effort of submitting relevant paperwork to determine their liability.
The chancellor's response was that “sensible reforms” have already been brought in, but he stopped short of discussing them in detail.
Javid said: “I shouldn’t say too much now but I understand the arguments against that tax.
“You pay taxes already through work or through investments and your capital gains in other taxes, there is a real issue with then asking them to, on that income, to pay taxes all over again.
“Sensible changes have already been made but it’s something that’s on my mind”.