Sunak isn’t scared to raise taxes, thus the wealth levy could be changed.
THE INHERITANCE TAX may be drastically altered, according to an analyst, who warned that Chancellor of the Exchequer Rishi Sunak is “not scared to hike taxes.”
The recent increase in National Insurance has created a heated debate in the United Kingdom about how the government should fund its pandemic expenditure. Many people are angry about the tax increase since it would disproportionately harm younger workers, while some rich individuals will be exempt. This has prompted proposals for revisions to wealth taxes to ensure that those with the broadest shoulders bear the brunt of the burden. Experts and politicians have long decried the British tax system’s complexity, with some advocating that wealth taxes be streamlined.
Chancellor Sunak, according to one analyst, will not be scared to raise taxes on the wealthy.
Last month, Julia Rosenbloom, a tax partner at Smith & Williamson, told FT Adviser: “Inheritance tax receipts are proving to be a more lucrative source of revenue for the Treasury, providing funds to the government to aid in the recovery of the country following the pandemic and to fund its reform agenda.
“The Prime Minister’s recent announcement of a new health and social care fee shows that he is not frightened of tax increases, even if they are controversial with some of his own party members.
“Given the amount that personal taxes such as inheritance tax and capital gains tax raise for the Treasury, this increases suspicion that when the Chancellor unveils his Budget next month, personal taxes such as inheritance tax and capital gains tax may be subject to modification.”
Ms Rosenbloom was correct, according to Shaun Moore, a tax and financial planning expert at Quilter, who noted that inheritance tax receipts were up 35 percent year over year between April and August.
“While this is a significant increase for the chancellor, it is a drop in the bucket when compared to other forms of tax,” he said.
“This is why, come the autumn, the chancellor may have to go elsewhere to raise some real cash in his Budget.”
“The chancellor requires additional funding to cover the cost of the pandemic’s economic assistance programs.”
Inheritance tax receipts increased £700 million in the time, reaching £2.7 billion, according to HMRC figures released last month, while both the nil rate band and the residence nil rate remained stable at current levels.
Why are inheritance tax receipts increasing, according to Paul Archer, a wealth planner at Kingswood?
“The primary. “Brinkwire Summary News,” he stated.