The Conservative Party could consider a £6bn reform to the inheritance tax (IHT) threshold and residence nil rate band (RNRB) rather than reducing the headline IHT rate in order to boost its prospects in the next general election, Quilter says.
Analysis published today (13 November) by the wealth manager found the cost of raising the threshold to £500,000 and removing the RNRB would cost HM Treasury £6bn from 2024/25 to 2027/28. Ahead of next week's Autumn Statement, Quilter estimates the £1.4bn annual cost for the reform would prevent around 12,500 families from having to pay IHT. "Making moves to modernise IHT could be a real rabbit out of the hat moment for Jeremy Hunt at the Autumn Statement," said tax and financial planning expert Shaun Moore. "Any changes could help garner the Conservatives some much needed popularity...
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