Jeremy Hunt is bracing for the Autumn Statement on November 22 and is facing pressure from MPs to scrap inheritance tax completely.
Inflation is still high, at 6.7 percent, meaning Mr Hunt has halted personal tax cuts in the Autumn Statement.
However, a poll for the Telegraph found Brits believe inheritance tax is the most unfair tax in the UK.
The standard inheritance tax rate stands at 40 percent, and is charged on the part of an estate which is above the £325,000 tax-free threshold.
For example: Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40 percent of £175,000 (£500,000 minus £325,000).
Despite the heightened calls to scrap the tax, Mr Hunt said in September this would be “virtually impossible” until the economy has improved.
Instead, MPs have been pushing for a workaround which would allow all families to leave behind £1m tax free.
To do this, the Chancellor would need to get rid of the £175,000 “residence nil-rate band” or “family home allowance”, and increase the allowance threshold from £325,000 to £500,000.
Pressure is mounting on the Conservative Party after defeat in the recent by-elections, and to win back confidence in both MPs and voters Mr Hunt may need to take decisive action.
However it is unclear whether the Autumn Statement will include inheritance tax cuts, or focus on lowering inflation and aim to tackle cuts in next year’s Spring Budget instead.
What do you think? Should inheritance tax be slashed? Vote in our poll below.
If you can’t see the poll, click here.
