No 10 plays down speculation PM would reduce rate of tax, which only affects around 4% of deaths a year
Rishi Sunak is reportedly considering an inheritance tax cut as he attempts to woo voters and create dividing lines with Labour, who are comfortably ahead in the polls.
The plans would make way for the eventual scrapping of the levy, the Sunday Times has reported.
However, Downing Street has sought to play down speculation that the prime minister was drawing up such plans regarding slashing the tax.
At present inheritance tax is charged at 40% for estates worth more than £325,000, with an extra £175,000 allowance towards a main residence if it is passed to children or grandchildren. A married couple can share their allowance, which means parents can pass on £1m to their children without any tax to pay.
The publication cited three sources who have said there is a “live discussion” at the highest level of government about reform of the levy.
Among the proposals under consideration is for Sunak to reduce the 40% rate in the budget in March, paving the way to abolish it in “future years”, the paper said.
