CHANCELLOR Sajid Javid last night dropped a major hint he could abolish death duties in his Budget later this year.
He said getting rid of inheritance tax was “something that’s on my mind” as he said it was unfair to target the elderly “all over again” when they die.
The levy is currently charged at 40 per cent of estates worth more than the tax-free level of £325,000 – or £650,000 for a couple.
Speaking at a fringe event at the Conservative party conference in Manchester Mr Javid said he “shouldn’t say too much now” but added: “I understand the arguments against that tax.”
It is the latest expensive tax cut the Chancellor is eyeing following previous pledges to look again at stamp duty rules, a tax break for the middle class and raising the National Insurance threshold.
Last night he confirmed the Government will definitely hold a Budget by the end of the year .
‘A REAL ISSUE’
Asked at a fringe event at the Conservative Party conference if he would consider getting rid of inheritance tax, he replied: “First of all we’ve already made some sensible reforms in that tax.
“But I hear what you’re saying – you’re not the only one – and I shouldn’t say too much now but I understand the arguments against that tax.
“You pay taxes already through work or through investments and your capital gains in other taxes, there is a real issue with then asking them to on that income to pay taxes all over again.
“Sensible changes have already been made but it’s something that’s on my mind.”
The Treasury rakes in more than £5billion a year from death taxes and the number of estates liable for the levy has almost doubled since 2011.
The possessions of almost one in every 20 deaths are liable for inheritance tax, with the average bill at around £180,000.
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