Inheritance tax: Warning of
Chancellor Rishi Sunak announced a host of new economic policies this week during his spending review. People across the country have been concerned as to how the pandemic will impact their wealth. Mr Sunak refused to rule out tax hikes, and Government figures published, alongside the spending review outline, how it could be set to recover more cash from taxpayers. This is because, amid the coronavirus pandemic, the number of people paying inheritance tax will rise by a fifth according to estimates.
This will see the Government earn £5.2billion in this tax year, up from £5.1billion last year.
The Government predicts that, this year, 722,000 people will have died by the end of 2020-21, up from 612,000 projected deaths for 2019-20.
Becky O’Connor of Interactive Investor explained that families of those who have passed away as a result of the COVID-19 crisis will be hit with a “double whammy” of tax bills.
She said: “The families of older people who died from coronavirus could now face unexpected tax bills on their estates. Many of those who died unexpectedly will not have had time to plan their affairs.
