Sajid Javid has hinted he could cut inheritance tax, saying “it’s something that’s on my mind”.
Speaking at a Conservative conference event, the chancellor said there was “a real issue” around inheritance tax.
Estates worth more than £325,000 are liable for the tax at 40%, except when the deceased leaves everything above the threshold to their spouse.
Fewer than 25,000 estates are liable for the tax each year – equating to less than 5% of all deaths.
Appearing at a Conservative conference fringe event organised by the Institute of Economic Affairs and the Taxpayers’ Alliance, Mr Javid was asked if he would scrap inheritance tax.
He replied that “sensible reforms” had already been made adding: “I shouldn’t say too much now but I understand the arguments against that tax.
“You pay taxes already through work or through investments and your capital gains in other taxes, there is a real issue with then asking them to, on that income, to pay taxes all over again.
“Sensible changes have already been made but it’s something that’s on my mind.”
Mr Javid also said there would be a Budget before the end of the year.
Inheritance Tax is a tax on the estate – the property, money and possessions – of someone who has died.
However, no tax is paid if the estate is valued at less than £325,000 or if anything above this threshold is left to a husband or wife, civil partner, charity, or a community amateur sports club.
Fewer than 25,000 estates are liable for the tax each year but 10 times as many estates need to complete and submit forms to check whether they are liable for the tax.