The Government could increase the rate of inheritance tax (IHT) in next week's budget to help plug its growing deficit, according to Standard Life estate planning specialist Julie Hutchison.
Figures from HMRC show the tax take from estates fell by almost £800m last year, but remains a significant earner for the Treasury, and an increase may be on the cards. Hutchison says the Government is already under political pressure to increase taxes for the rich, and says one way it may seek to do this is by aligning inheritance tax with the new top rate of income tax. In October's Pre-Budget Report, the Treasury confirmed it would be increasing income tax to 45% for those earning over £150,000 per year. Hutchison says the same rate may be applied to estates as well. "Having only ...
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