Inheritance tax increase warning amid Rishi Sunak
The Chancellor commissioned a Government review which looked at ways he could try to raise funds to help the country’s economy recover. The UK has slipped into a “double-dip” recession this month after Prime Minister Boris Johnson set stricter measures in a bid to lower cases. One cause for encouragement is the incoming vaccines, which have boosted business optimism. But monthly IHS Markit data shows that the PMI (Purchasing Managers’ Index) has dipped below 50, suggesting the UK economy is contracting rather than growing.
Mr Sunak announced some plans in his Spending Review last week, such as cuts to foreign aid and and a pay freeze for public sector workers in 2021-2022.
But the announcement was lacking detail on taxation, with some fearing hikes could be around the corner.
The Government review, published this month and commissioned by Mr Sunak, suggested inheritance tax could be affected.
Some believe a hike could be inevitable as Mr Sunak looks to pay for the costs of the pandemic.
