Inheritance Tax threshold freeze to drag more into paying death tax

The Chancellor is poised to freeze the threshold above which people must pay inheritance tax for another two years. Jeremy Hunt and Rishi Sunak are understood to have agreed to the move which will mean the £325,000 threshold will remain in place until April 2028. Wealth manager Quilter estimates the extended freeze could bring in an extra £1bn for the Treasury. Andrew Tully of Canada Life said: “While inheritance tax has historically been a tax of the very wealthy this is clearly no longer the case. With most personal tax allowances including the standard and residence nil rate band frozen until at least April 2026 , this is now a concern for larger sections of society as the inheritance tax net widens.”

Financial Times

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