IHT BROCHURE (1) - Flipbook - Page 6
The tax landscape of a nation is seldom free from the influences of its political climate. As
the UK stands on the cusp of potential political shifts, the discussions around Inheritance
Tax (IHT) have been supercharged in terms of intensity and implications. The evolving
political narratives around IHT are poised to signi昀椀cantly impact families, 昀椀nancial planners,
and the broader economy.
IHT: The Political Battle昀椀eld
Nicholas Hyett, investment manager at Wealth Club, succinctly captured the current
atmosphere by noting that the Inheritance Tax has unexpectedly emerged as the epicentre
of the UK’s political discourse. The reasons are manifold. Last year, IHT funnelled a
whopping £7bn into the HMRC coffers, and recent
indicators suggest an upward trajectory. The political divides on IHT are sharp, with debates
oscillating between viewing it as an effective means of wealth redistribution and double
taxation on individuals who’ve already paid their dues.
Furthermore, with the recent resurgence of the Labour Party, the discussions surrounding
IHT have become even more intricate. Historically, the Labour Party has had varied stances
on wealth and inheritance taxes. Their return to prominence could shape future policies,
affecting the tax’s structure, rates, or even its existence.
Rumoured Changes
In a somewhat unexpected turn, despite being traditionally viewed as a proponent of
wealth accumulation and inheritance, the Conservative government has been rumoured
to be mulling over the abolishment of IHT. Such a move, if materialised, could dramatically
reshape the inheritance landscape in the UK.
Complementing this rumour is the buzz around potential changes to the nil-rate band.
Laura Hayward, a tax partner at Evelyn Partners, hinted at the possibility of an increase
in the nil-rate band as a prospective announcement during the autumn statement. This
shift could offer some respite to families, especially given the frozen allowances and the
consequent inflationary pressures. While bene昀椀ting many, such a change would also
underline the need to be abreast of the constantly shifting tax rules and the importance of
timely 昀椀nancial planning.
