Inheritance Tax changes: Chancellor Rishi Sunak walking ‘tax tightrope to balance Budget Katie Sewell
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Chancellor Rishi Sunak will announce his long-awaited Budget on Wednesday, March 3, which will mark one year since the Chancellor first introduced a number of generous Covid relief packages to see the UK through the pandemic. However, this year s Budget is not expected to be as generous as it was in 2020, with Britain now facing a looming fiscal blackhole due to significant lockdown borrowing. There are mounting concerns the Chancellor could take this opportunity to hike taxes in order to help recuperate some of the funds lost to the pandemic - and many are concerned the announcement tomorrow could spell major changes to Inheritance Tax.
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Camilla Bishop, Partner at law firm DMH Stallard, said: “It is highly unlikely that the Chancellor will overhaul the Inheritance Tax regime on Wednesday.
“IHT is complex and the potential ramifications mean any changes need to be carefully thought through – something the Government just has not had time to do in recent months.
“The recommendations in the All Parties Parliamentary Report of January 2020 were radical with the introduction of a ‘gift tax’ and dispensing with Capital Gains Tax uplift on death.
“Such changes would mean it is virtually impossible to pass on wealth without suffering tax.
Inheritance Tax changes: There’s usually no Inheritance Tax to pay on small gifts made out of normal income (Image: GETTY)