With Rachel Reeves being tipped to increase inheritance tax as part of her deficit-filling maiden Budget, GB News members have been asked if this is the right policy ahead of the Chancellor’s Budget on October 30.
Reeves is reportedly considering hiking a number of levies after claiming the Tories left a £22billion “black hole” in public finances.
In its current form, inheritance tax comes with several exemptions and reliefs.
Inheritance tax is charged at 40 per cent on property, possessions and money valued above the £325,000 threshold.
The levy currently raises around £7billion a year and only impacts four per cent of deaths.
Despite inheritance tax impacting a small number of families, it remains one of the most controversial in the UK.
An Ipsos poll from 2023 reveald that inheritance tax, stamp duty and capital gains tax were seen as the most hated levies.
However, income tax, national insurance and VAT have been identified as the taxes which the public remain the most receptive to.
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Reeves has also been warned that a hike to inheritance tax would risk punishing middle-class homeowners.
Shadow Chancellor Jeremy Hunt said: “Unfortunately it looks like it will be people who have saved all their life to provide an inheritance to their family who will pay the price for Labour’s tax rises.”
MoneySavingExpert Martin Lewis also warned that while the tax “makes the wealthiest [shoulder] a bigger brunt, in reality psychologically many, many more people than who will pay inheritance tax fear it”.
A recent YouGov poll found just 27 per cent of the public would support increasing inheritance tax, while 60 per cent oppose the idea.
The figure is slightly higher among Labour and Liberal Democrat voters, with the proportion in August hitting 37 per cent.
Tory and Reform UK voters are the most opposed, with support plummeting to just 15 and 13 per cent respectively.
Overall support for Reeves raising taxes stood at just 15 per cent, with 29 per cent wanting rates reduced.
Do you agree with Rachel Reeves’ expected inheritance tax raid? Have your say in the comments section below.
