UK Inheritance Tax Set to Increase for the Wealthy in 2024 Budget
- The UK government is exploring plans to raise Inheritance Tax as part of a strategy to address a £40 billion shortfall in public finances.
- Only 5% of deaths were subject to Inheritance Tax in the previous year, indicating that the wealthy would primarily bear the brunt of any changes.
- Formal announcements regarding tax changes and budget adjustments will be revealed on October 30, amidst concerns about cuts to public services.
In October 2024, reports emerged about the UK government's plans to increase Inheritance Tax as part of a broader strategy to address a £40 billion shortfall in public finances. The chancellor is considering various tax reforms to enhance revenue, with a specific focus on the wealthy, as indicated by data showing that only 5% of deaths were subject to Inheritance Tax in the previous year. This reform is part of a larger budget strategy that includes potential cuts of up to 20% in certain departments, though the government aims to maintain essential public services amidst these fiscal challenges. Additionally, there may also be changes to other taxes, such as employer national insurance rates and capital gains tax on share profits, which are projected to generate significant revenue. The Budget announcement scheduled for October 30 will clarify the proposed changes and the government's approach to solving the pressing financial issues facing the UK economy.