Someone may want to have a word with Rishi Sunak about his mooted cuts to the "puntive and unfair" inheritance tax (IHT). & no, not only because it will do estate planners like me out of work..

The argument that IHT is unfair is a pretty simple one: Any wealth you happen to own when you die has already been taxed as you generated it, so taxing it again feels inequitable. That is certainly true of savings and investments that are derived from income. It might be less true of your home, which is exempt from CGT but potentially subject to stamp duty when you bought it. The picture gets even more unclear when you factor in inherited wealth. Either way, that is the argument.

The counter-argument has also, always been clear: We live in a social democracy with progressive taxation. The wealthier you are, the more you contribute to the overall benefit of society. If you've made it to death with a nice slice of pie, why not use a minor part of that to its widest social benefit (you can hardly take it with you after all).

Cutting IHT has always been seen as a policital hot potato as it feels like a win for the rich, which is rarely a large vote generator. 

But no, this is not why someone needs to have a word with Rishi.  Someone needs to remind him that it is was his own government just last year that decided to freeze the IHT allowance until 2028, effectively pushing millions of people into the regime due to the effect of inflation. Essentially he expanded the IHT take via stealth. Now he's describing his own policy as puntive and unfair. What a funny business politics is!

If you are impacted by a looming IHT liability and want practical advice in respect of your estate planning, please do not hesitate to contact any member of our Wealth Managment and Taxation Team on 01494 521 301.