THE COMMUNITIES Secretary became the second Cabinet minister in a week to publicly speak out against inheritance tax – raising expectations it will be axed in the Budget.
Robert Jenrick described death taxes as “particularly unpopular” because it slaps the elderly with paying tax twice, having saved up their whole lives to leave assets to their children and grandchildren.
He said it was always “perceived to be unfair” and argued that the rules are slanted towards the rich because they are able to find financial loopholes around the tax.
He told Sky News: “I can see why the Chancellor is interested in this one.”
His comments sparked fresh hope among campaigners that Sajid Javid will use his first Budget later this year to slash or abolish inheritance tax altogether.
The levy is currently charged at 40 per cent of estates worth more than the tax-free level of £325,000 – or £650,000 for a couple. Gifts of money, property or possessions made in the seven years before someone’s death are liable to inheritance tax.
Last week the Chancellor signalled he could scrap inheritance tax, telling delegates at the Tory party conference: “It’s something that’s on my mind.”
He said it was unfair to target the elderly’s wealth “all over again” when they die.
The Treasury rakes in more than £5 billion a year from death taxes and the number of estates liable for the levy has almost doubled since 2011.
The possessions of almost one in every 20 deaths are liable for inheritance tax, with the average bill at around £180,000.
Mr Jenrick told the Ridge on Sunday show on Sky News: “It is a tax which is particularly unpopular because people can see the fundamental unfairness of paying tax twice and people are having to leave property that they have saved up their whole lives to leave to their children and grandchildren, to then see them pay additional tax.”
