Tories ‘mull inheritance tax pledge in bid to win subsequent election’

Downing Street is reportedly holding talks about making scrapping inheritance tax a manifesto pledge in a bid to win the following election.

The Times reported that No 10 was mulling over abolishing the levy a dedication to shore up votes in so-called “blue wall” seats in 2025. Supporters argue that the coverage may very well be a “gamechanger” within the south of England the place the Conservatives are defending constituencies weak to features from opposition events, based on the paper.

However, a No 10 supply stated such plans weren’t on Prime Minister Rishi Sunak’s “mind at the moment”. Sunak made halving inflation by the tip of the yr one of many 5 key ambitions for his management, and Jeremy Hunt has signalled this goal shall be prioritised over tax cuts.

The wider financial problem dealing with the Chancellor and Prime Minister was illustrated by official figures exhibiting the UK financial system contracted in May. While the celebration continues to path Labour within the polls, The Times reported that abolishing inheritance tax was being thought-about as a manifesto pledge, reasonably than a coverage to be applied subsequent yr.

“It’s about being an aspirational country. You work hard, play hard and pass on your wealth. It’s a live discussion,” one supply acquainted with the discussions informed the paper. The charge of inheritance tax is presently 40% for estates value greater than £325,000, which is barely charged on the portion that’s above the edge.

But estates of spouses and civil companions can move on as much as £1 million with none inheritance tax legal responsibility. Consumer Prices Index inflation peaked at 11.1% development final yr and was final reported at 8.7% for May. Abolishing inheritance tax may price the Treasury a possible £7 billion a yr and could be contingent on that determine falling considerably, the Times reported.