Intestacy: The statutory legacy increases – what does this mean?
With a cross-party group of MPs recommending a radical overhaul of inheritance tax, James Ward, head of our private client team, comments in International Investment.
There would be very little objection from the wealthy middle classes if such a proposed cut in inheritance tax was implemented and tax generally simplified. The rise in property prices alone have seen so many estates pay inheritance tax at a very punitive 40% rate. However a reduction to say 10% or 20% does pose some questions.
Would a Conservative Government propose such a tax cut when the coffers need filling and the main reason they are in power with such a majority is the Northern working classes? Many of these "new blue voters" will never have an issue with inheritance tax under the current regime, where a married couple can leave £1m from this April to their children if they own a home valued over £350,000. A change, as proposed, may not be well received by them since it clearly favours families in the south.
Nothing is quite that simple when it comes to headline grabbing tax cuts. However, even if these proposals are not followed, I would expect to see the simplification of inheritance tax in some way on March 11th or a future budget, potentially following some of the recommendations of the Office of Tax Simplification last year."
The full article in International Investment can be read here.
Skip to content Home About Us Insights Services Contact Accessibility