Just when you thought Inheritance Tax was to become yesterday’s news, it’s back as, apparently and potentially, a ‘battleground policy’ as the election looms. The amount it raises is bound to have increased, as are receipts from all other taxes, where allowances have been frozen and inflation has inflated what’s being taxed. But in the grand scheme of things, it doesn’t raise a lot, so making it better or worse will have more of a psychological (for which read vote-winning or losing) than sorting-out-the-NHS type of effect. So, yes, probably easy meat for a headline or two.
Well, the lesson of this week in politics must be to expect the unexpected. Or, alternative interpretation, to expect more of the same. The speculation on the future of Inheritance Tax has switched from abolition to a rise in the amount of wealth you can have before the 40% payment hits.