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Chancellor hints at death duties reform

2nd October 2019

Chancellor Sajid Javid has admitted that reforming inheritance tax rules is on his mind - and confirmed that a Budget should take place before the end of the year.

Speaking at an event staged by the Institute of Economic Affairs and the Taxpayers' Alliance, Javid was asked if he would get rid of inheritance tax.

Javid said:

"We've already made some sensible reforms to that tax, but I understand the arguments against it.

"When people pay taxes already through work or investments, capital gains or other taxes, there's a real issue with then asking them to pay taxes all over again.

"Sensible changes have already been made but it's something that's on my mind."

Estates are taxed at 40% on any amount that exceeds £325,000, except when the deceased leaves above the nil-rate band to their spouse.

Inheritance tax could be in line for change whenever Budget 2019 takes place.

The Office for Tax Simplification has recommended reducing the current seven-year period at which tax may be due on gifts to five years.

It also advised replacing various gift exemptions with a single allowance, and implementing a digital system to eradicate complex forms.

Get in touch for estate planning advice.

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