The “Inheritance Tax receipts at record levels” headlines have been a constant in recent months. Not be a surprise, as inflation continues to inflate and allowances have been frozen since 2009, you did not misread; and will remain so until 2031. House prices and growing investments increase the take and bringing pensions into the mix next year will bump up liabilities for many. It’s still the case that less than 5% of estates pay IHT and it often seems that IHT is an ‘aspirational’ tax, feared and hated by many for whom it is never likely to be a problem. Those who’s actual problem it may be generally shout loudest (farmers/Clarkson, looking at you) and have some influence. Hence the Christmas Eve U-Turn on agricultural and business relief – which won’t make a big difference in the scheme of things, as even the ‘record’ £8.5bn is just 2.5% of the total raised by the elephant in the room: Income Tax.
Budget Rumours and Possibilities
The Budget Rumour Machine is not the shambles it was last year. Before Rachel’s Swansong all sorts of stuff was leaked to see what sort of puddle it would create.
