Autumn Statement: IHT disappointment as Hunt ignores reform
- On November 23, 2023
- By GrowthInvest Marketing
Hopes of inheritance tax reform were dashed in the 2023 Autumn Statement, as chancellor Jeremy Hunt announced tax cuts for corporations and workers instead.
No mention was made in Hunt’s speech of the anticipated IHT decrease, with the slashing of national insurance from 12 per cent to 10 per cent taking up most of the headlines.
The lack of reform to the ‘death tax’ will come as a disappointment to wealthy estates who were hoping for a reduction, and eventual abolition, of the levy.
IHT will continue to be charged at 40 per cent for estates worth more than £325,000, plus an additional £175,000 allowance for a main residence.
Married couples are entitled to share their allowance, enabling parents to pass on £1mn to their beneficiaries tax-free.
Jack Gill, managing director of probate broker Final Duties, said: “Hopes of an IHT cut have been dashed today, with the government instead choosing to pander to the masses in order to boost popularity ahead of the next general election.
“This is disappointing given that IHT is no longer a tax on the wealthy and more and more of us face falling foul of it as our estates grow in value and become liable.”
He said that an oversaturated property market in recent years has pushed more and more people over the threshold.
“Given that the government is largely to blame for such an out of kilter housing market, you’d have thought they would make amends by reducing their inheritance tax grab – a grab that has seen the total sum of receipts paid increase by 17 per cent in the last year alone.”
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