Will inheritance tax increase at the Budget?

A recent Kingsley Napley and YouGov poll has revealed half of the public still oppose increases to inheritance tax (IHT) rates while two thirds think the £325,000 threshold should rise

However, on average just 24,500 estates (4.39% in the 2021/22 tax year) across the UK are pulled into paying IHT. The current threshold is £325,000, with any inheritance after this being subject to IHT at 40%.

With the Budget fast approaching many are speculating about changes to IHT, with the rate being increased, or the cap possibly being lowered.

Although Chancellor Rachel Reeves and the PM, Keir Starmer have both ruled out changes to the big three taxes of national insurance, income tax and VAT, the topic of IHT has been brushed aside whenever the question has been raised.

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