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. My guess is they will be looking for another Home Counties-pleasing headline rather than a £6bn hit to the coffers, and that any give-away will be taken back somewhere less headline-grabbing. But, let’s face it, many of the IHT allowances have not changed since it was introduced in 1986. The big announcement in that Budget was ‘the abolition of Labour’s much-disliked Capital Transfer Tax’. To be replaced by the now equally derided Inheritance Tax. Plus ça change, and tout that.
“Are Brits too reliant on inheritance for their retirement plans?”
The answer is, in many cases, probably yes, and as less and less of the next generations have or are able to build pensions and other saving, more and more so. And it’s a double-edged sword.
