UK households face ‘most unfair tax’ in Britain, regardless of who wins election

Rishi Sunak failed to scrap UK’s ‘most unfair tax’ as British households warned they STILL risk paying inheritance tax after he was snubbed in Party manifesto conservative. Inheritance tax is paid by thousands of Britons every year, with households hit with an extra 40 per cent tax and will remain in place if the Conservatives win the July election, after being absent from Mr Sunak’s speech at Silverstone in Northamptonshire.

Gary Smith, financial planning associate at Evelyn Partners, said: “Labor has made clear that it believes some inheritance tax exemptions and allowances are too generous, so it is possible that action will be taken to reduce them if they gain power.

“Although the IHT exempt status of defined contribution (or cash buy-out) pension funds has not been mentioned by the Labor Party, it has been repeatedly highlighted by think tanks like an anomaly, so he might just be on Rachel Reeves’ radar.

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“If some steps were taken to levy IHT on the transfer of pension assets, this would likely lead to a widespread draining of draw pots, and a shift towards other assets and tactics which mitigate IHT, which, at 40 percent, is quite significant.”

You can give up to £3,000 a year without it being subject to inheritance tax. This allowance can also be carried forward over a tax year, meaning up to £6,000 can potentially be offered. You can give multiple cash sums of up to £250 each year to everyone you know, without it affecting your inheritance tax.

You can give as much money as you want to charity without it being affected by inheritance tax. You can give as much money as they want, provided it comes from your regular income, such as employment or pension income, and provided it does not affect your standard of living.

Parents can give £5,000 to a child, while grandparents can give £2,500 to a grandchild, to help cover wedding costs.