22nd December 2023
Katharine Arthur, Partner and Head of Private Client, features in IFA Magazine discussing what the future may hold for Inheritance Tax (IHT) in 2024.
There have been calls for a cut in the IHT rate, especially in the lead up to the 2023 Autumn Statement. Whilst there were no changes announced to IHT in the Statement, there are arguments to be made in favour of scrapping it, with the fundamental view that it is unfair to tax income throughout an individual’s lifetime, and then again after they die.
However, Katharine notes that the UK economy is in a fragile state, with government gross debt at 100.5% of gross domestic product (GDP). IHT receipts are worth £8bn to the Treasury and if IHT were to be scrapped, or receive a rate cut, the shortfall would have to be made up elsewhere. Katharine says: “This poses another significant challenge to the argument to cut IHT, because the Government currently has few options to achieve this.”
To read more on Katharine’s view of the Government’s options and the future of IHT reform, download the latest issue of the IFA Magazine here.