British finance minister Rachel Reeves will increase the amount of money raised from inheritance tax at her Oct. 30 budget, the BBC reported on Friday without providing further details of what changes will be made to the measure.
Reeves’ first fiscal statement since Labour’s July election victory will set out how she intends to fix a huge shortfall in the government’s day-to-day budget while sticking to pledges not to raise the main taxes paid by what it calls ‘working people’.
A number of possible changes to inheritance tax exemptions and reliefs are under consideration, the BBC reported without citing named sources.
When asked for comment on changes to inheritance tax, the finance ministry said it did “not comment on speculation around tax changes outside of fiscal events”.
The tax is paid at a rate of 40% on the value of estates above a threshold of 325,000 pounds – which has not changed since 2009.
It is currently paid after only 4% of deaths, raising about 7.5 billion pounds ($9.80 billion) per year.
Within inheritance tax there are allowances for transferring family homes to younger generations, as well as business and agricultural reliefs.
From the budget as a whole, Reeves is said to be looking at introducing tax rises and spending cuts to the tune of 40 billion pounds, as she looks to put investment into services while also stabilising the fiscal situation.
($1 = 0.7653 pounds)
(Reporting by Sarah Young)
