Inheritance tax is Britain’s ‘most hated’ tax: but would the Government really scrap it? This is the money podcast
It has been called the most hated tax in Britain, but only four per cent of people pay it.
You could be forgiven for thinking that inheritance tax is something only the super-rich need to worry about.
But thanks to rising house prices and a growing desire to transfer wealth between generations, more and more people are being drawn online.
It occurs not only when someone is left property or other assets from someone’s estate, but also when a gift is accepted from someone who dies before the “seven-year rule” tax exemption takes effect.
The IFS says that four per cent could become 12 per cent within a decade.
And many of those who will never pay it still hate the idea that the government is taking a big chunk of the wealth that people have worked hard to accumulate over their lifetimes.
So it could be good news that Rishi Sunak is considering reducing inheritance tax, or even scrapping it altogether, as a potential vote-winner ahead of the next election.
What’s wrong with the inheritance tax? How could it be made more fair? Could the Government really get rid of it? Simon Lambert, Helen Crane and Georgie Frost argue.
That is not the only plan the Government is said to be hatching for our finances.
Chancellor Jeremy Hunt is also reported to want to increase the annual Isa allowance of £20,000, but only for those who use it to invest money in companies listed on the weakened London Stock Exchange.
The team considers what deters people from buying shares and sharing Isas, whether the rules are too restrictive for the way we manage our money today, and whether to encourage people to invest money in a market that has been through difficult times lately is a good idea.
Furthermore, it has been a year since the disastrous mini-budget that shook the mortgage market.
With a series of mortgage rate cuts by big lenders this week, could home loan rates finally be turning a corner now that the base rate has been frozen?
And finally, with the price cap dropping this weekend, we discuss whether the time might finally be ripe to commit to a fixed rate on your energy bills.