Hunt contemplates IHT cut in the Autumn statement

Chancellor Jeremy Hunt is reportedly mulling over the possibility of reducing inheritance tax in the upcoming Autumn Statement, as reported by The Telegraph.

If independent data confirms available fiscal space, Hunt is open to accelerating plans for non-inflationary tax cuts in the coming month. These deliberations follow the Office for Budget Responsibility’s recent revelation that the Treasury’s coffers are now in surplus by approximately £5.5 billion.

Hunt has, however, ruled out personal tax cuts in the forthcoming Autumn Statement, concerned that such cuts might hinder efforts to curb inflation. Nevertheless, he remains receptive to measures that do not directly inject additional funds into the economy, including potential reductions in inheritance tax or stamp duty.

The potential reforms in inheritance tax may involve a reduction in the current 40% rate or simplifying the system to enable all families to pass on £1 million tax-free. For stamp duty, one possibility under consideration is a rebate for homebuyers who enhance their property’s energy efficiency within two years.

The decision to implement tax cuts ultimately hinges on further improvements in the fiscal landscape in the weeks to come, with the existing £5.5 billion surplus deemed insufficient by Treasury insiders. It is essential to note that such projections are subject to change, given external factors beyond the government’s control.

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