The Inheritance Tax Is Expected To Be Cut By Jeremy Hunt In The Autumn

Jeremy Hunt is poised to cut inheritance tax in the Autumn Statement in a move that could reduce Tory pressure over dire polls.

The Chancellor is increasingly expected to act to ease the burden next Wednesday after inflation declined slightly quicker than expected.

He is also thought to have a tad more wriggle room after Treasury revenues were boosted by increasing wages pulling people deeper into the tax system.

Treasury sources have emphasised that the package will not include anything that fuels inflation, and must be ‘affordable’.

Jeremy Hunt is likely to move on business taxes first, but insiders have sounded increasingly warm on the prospect of trimming IHT.

Many Tories argue it’s a tax on aspiration and decreasing it would draw a remarkably precise dividing line with Labour for the election.

Official figures revealed inflation dropped by more than anticipated to 4.6 per cent in October, its lowest level for two years. Experts had predicted a rate of 4.8 per cent.

Downing Street had previously played down ‘speculation’ on cutting inheritance tax, with Whitehall sources saying in September that there had been ‘no discussions’ about including the measure in the Chancellor’s autumn statement.

However, Jeremy Hunt said that the Government was shifting to the ‘next part’ of its plan.

He said that they were now beginning to win the battle against inflation and they could move to the next part of their economic plan, which was a long-term growth of the economy.

The move would be welcomed by Tory backbenchers, including former business secretary Jacob Rees Mogg who said IHT should be ‘extinguished’.

Inheritance tax is levied at 40 per cent after death and raises more than £7 billion a year. Although most estates fall below the starting threshold, which can be up to £1 million, surveys indicate it’s widely unpopular.

Rishi Sunak was challenged on taxation during PMQs.

Tory MP Greg Smith asked the premier to ‘agree in principle’ that the higher rate tax band was never meant to catch police sergeants, nurses and teachers.

Rishi Sunak said that he agreed with him and was pleased that the vast majority of people would continue not to pay the higher rate and that he shared his ambition to cut taxes for working people.

He said that right now inflation was falling and they were sticking to their plan, delivering a halving of it this year, because that was the most effective tax cut they could have delivered for the British people this year, rather than making it worse, as the party opposite would.

This will make little to no difference to real people. Meanwhile, their ‘you will own nothing and be happy’ proceeds at speed. They will make sure you own nothing and that will be nothing left for your children to inherit.

This is a scorched earth policy. They know they’re on their way out in the next election so they’re filling their own and rich backer friends’ pockets with gold. I wouldn’t be surprised if they tried to bring back sending children up chimneys because this is what Tories do.

They’re also spending 8 million a day on hotels for illegals, how about cutting that before hitting British taxpayers?

You pay income tax and then Inheritance Tax, which only promotes less saving. Less production and fewer incentives to work hard and save. 

The only thing you’ll probably inherit is a cold and then the Tory Party would tax that given half a chance.