Greater than half of British taxpayers now wish to see inheritance tax (IHT) abolished fully, in keeping with a brand new YouGov ballot commissioned by legislation agency Kingsley Napley.
Help for scrapping the tax has risen to 54%, up from 49% a 12 months in the past, signalling rising public resistance regardless of mounting strain on the general public funds.
Different key findings embody:
+ 76% oppose any enhance to the present 40% IHT price (up from 69% in September 2024)
+ 67% assist elevating the £325,000 tax-free threshold (up barely from 64%)
Regardless of these sturdy views, most individuals haven’t taken steps to scale back their potential legal responsibility. A placing 76% say they’ve both not thought of or actively determined towards looking for skilled recommendation on inheritance tax—whilst extra estates are being pulled into its scope.
The findings land simply weeks forward of chancellor Rachel Reeves’ Autumn Funds, the place she is anticipated to keep up present thresholds however doubtlessly tighten exemptions. Rumoured adjustments embody a cap on lifetime presents, changes to tapering guidelines, and even scrapping the first residence nil-rate band.
James Ward, associate and head of personal shopper at Kingsley Napley, stated: “Inheritance tax is successfully this nation’s wealth tax. It’s only paid by 1 in 20 estates and while it isn’t a giant cash spinner for the Treasury within the scheme, it should little doubt be tempting for the Chancellor to squeeze extra income out of those estates given her different pledges. Ms Reeves is unlikely to present two hoots about rising public opposition to IHT reform, regardless of the very fact it’s evenly unfold within the voter neighborhood. The subsequent election can also be doubtless too far off for her to decide on political over financial worth in outflanking Farage.”
“Now we have had a busy summer season of purchasers desirous to property plan forward of doable IHT associated Funds measures,” James provides. “Nonetheless apparently, our analysis reveals that solely 5% of most people have taken recommendation on mitigating any IHT which may be due on their property. Many could due to this fact be lacking a possibility to guard their estates for family members left behind. In fact, the irony of any forthcoming Funds measures is that the property market decelerate and elevated warning of fogeys gifting to their offspring Financial institution of Mum & Dad model could imply any IHT adjustments develop into an personal aim for the Treasury in any occasion.”
Kingsley Napley is urging those that haven’t but reviewed or up to date their property planning forward of twenty sixth November to take action urgently.
“There’s nonetheless time to reward out of extra earnings, set-up trusts or profit from doubtlessly exempt transfers earlier than these measures are blocked in future,” Ward added.
