Overview:
- In 2024-25, inheritance tax (IHT) is forecast to raise £8.3 billion. With the changes announced in the October 2024 budget, the revenue is expected to increase by 67 per cent, to £13.9 billion in 2029-30.[1]
- Inheritance tax is distortionary, unfair and deeply unpopular. The proportion of estates affected by it in 2023-24 was the highest since 2006-07 and it is due to rise to the highest recorded level by 2029-30.
- Inheritance tax should be abolished. As a minimum, the nil-band rate should be increased to either £500,000 or £1 million and the rate cut from 40 per cent to 20 per cent.
READ THE BRIEFING NOTE
[1] Office for Budget Responsibility, Public finances databank – October 2024, 30 October 2024, obr.uk/download/public-finances-databank-september-2024/?tmstv=1732116993, (accessed 20 November 2024).