![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/inheritance-to-be-targeted-in-tax-raid-by-jeremy-hunt/&media=https://uknews.evprotec.com/wp-content/uploads/2022/11/TELEMMGLPICT000315416010_trans_NvBQzQNjv4BqC9PogZUtSpqAqO-tnweStUikPYR0xYwuEBLwP9UFqPg.jpeg&description=The Telegraph revealed on Saturday that the pension lifetime allowance will also be frozen for a further two years, opening up people to higher tax payments on their lifetime savings. It is part of a wider strategy by the Government to make sure the wealthiest shoulder the biggest burden of the spending cuts and tax rises coming next week. The Treasury has estimated that a fiscal black hole of around £60 billion needs to be filled by the Autumn Statement to avoid the Government going into more debt. Mr Hunt and Mr Sunak held talks on Saturday about the announcements. Major decisions have now been locked in and submitted to the Office of Budget Responsibility. By freezing inheritance tax thresholds for a further two years the Treasury could rake in as much as a £1bn extra, according to the wealth manager Quilter. Other calculations based on a lower inflation rate suggest a lower saving for the Treasury. Inheritance no longer a tax of the 'very wealthy' The Government introduced a new "transferable main residence nil rate band" of £175,000 in 2017. It applies when a home is left to direct descendants. In 2009 only 2.7 per cent of estates paid death duties, but in recent years the proportion has remained consistently close to four per cent. In 2019-20, the latest year for which data exists, 23,000 families paid death duties. 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.' Mr Hunt will announce his Autumn Statement decisions to the House of Commons on November 17.){kind=link}
Chancellor agrees to freeze tax threshold for another two years as he battles to balance the books ahead of next week’s Autumn Statement
Jeremy Hunt is set to announce a new tax raid on inheritance as he battles to balance the books at next week’s Autumn Statement.
The Chancellor and Rishi Sunak are understood to have agreed to freeze the threshold above which people must pay tax for another two years.
It means that more people will have to pay inheritance tax. Others who would already have paid some tax will also have to give a larger chunk of their estate to the Treasury.
Each individual can pass on £325,000 in inheritance tax free, a level which was first set in 2009. A couple can jointly pass on £650,000.