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Inheritance tax reform back on table as ‘leg work’ done for Truss and Sunak | Personal Finance | Finance

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Inheritance tax is often loathed within the UK, with many viewing the levy as a “death tax” or restrictive on income before death. There have long been calls for the levy to be reevaluated, with some asking for reform, while others saying it must be scrapped altogether.

The tax has been a subject of dialogue within the Tory leadership race, which has heavily centred on the potential for tax cuts.

Neither Rishi Sunak or Liz Truss has fully committed to any specific reform to inheritance tax.

Nevertheless, each candidates have said they might be reviewing the tax in the event that they inherited the keys to Number 10.

One expert has suggested this might signal towards inheritance tax being on the political agenda in the approaching months.

READ MORE: How your pension could aid you slash inheritance tax to zero

Some have suggested inheritance tax is simply too complicated because it currently stands, and may benefit from being modified to an already familiar system.

In the same sense, one other argument is that inheritance tax must be slashed from its current rate of 40 percent.

This was argued, amongst others, by AAT, with Phil Hall, Head of Public Affairs and Public Policy on the group, stating: “By halving the very high headline rate, incentives for avoidance or evasion will probably be removed. That is prone to increase the tax take.”

Other suggestions have included increasing the present allowances, and boosting the annual gifting rules currently in place.

An HM Treasury spokesperson previously told Express.co.uk: “The overwhelming majority of estates don’t pay inheritance tax – greater than 93 percent of estates are forecast to have zero inheritance tax liability in the approaching years – nonetheless the tax raises greater than £6billion a yr to assist fund public services thousands and thousands of us depend on day by day.”

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