The news that inheritance and income tax cuts are being considered for the Budget was hailed by some Conservative MPs.
Ranil Jayawardena, a former Cabinet minister and the chairman of the Conservative Growth Group, said: “Time is running out, and the Government needs to be bold. It’s time to axe the death tax.
“It’s a double tax, because it’s a tax on money which has already been taxed, and it piles on the pressure at the most sad and stressful of times. It is the least popular of taxes with people of all incomes because it is anti-aspirational, anti-family and is simply unfair. It needs to go.
“Of course, the Government should seek to reform income tax to make it family-friendly too. Married couples and civil partners should have fully transferable income tax allowances, which would particularly help working-age parents with children when a family’s finances are tested the most. Let’s reward people who are trying to do the right thing.”
David Jones, a former Wales secretary, said: “Both income tax and inheritance tax need to be cut. Inheritance tax, in particular, should be abolished. It is an immoral tax on assets that have mostly been amassed out of taxed income. In my experience, it is arguably the most hated tax of all.”
In the autumn, some Tory MPs pushed for cuts to income tax rather than inheritance tax, arguing that benefiting workers rather than those with personal wealth was wiser.
The next general election must be held by January 2025 at the latest, but a date next autumn is widely expected to be picked. Mr Sunak gets to decide the timing.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
