Boris Johnson has demanded a cut to inheritance tax in the upcoming Autumn Budget, claiming that it is fair the “colossal wealth” accrued by the elder British generations is passed down to their children.
The former prime minister issued his plea after sources confirmed to The Independent that cutting inheritance tax and taxes for small businesses is under consideration.
Chancellor Jeremy Hunt will make his Autumn statement next Wednesday amid reports that there is more money in the budget than expected.
Higher tax revenues and lower borrowing costs have given Mr Hunt more than £20bn extra, according to reports, which is over triple the amount in March’s budget.
The chancellor will get final forecasts from the Office for Budget Responsibility on Friday night and make a final decision at the weekend ahead of Wednesday’s statement.
Jeremy Hunt could squeeze the welfare budget while cutting inheritance tax (Hannah McKay/PA)— (PA Wire)
Mr Johnson, 59, speaking from the cabin of a plane about to take-off, said that as older generations “head heavenward”, it is incumbent on the current government to facilitate them with the ability to pass down inheritance without being heavily taxed.
The tax level is currently charged at 40 per cent on estates worth more than £325,000, with an extra £175,000 allowance for estates passed on to children or grandchildren.
The Treasury is reportedly considering cutting the rate to 30 per cent, as well as increasing the threshold at which it kicks in.
Mr Johnson said: “We had cushy pensions, we had free university education, we had cheaper mortgages, we were able to buy our homes. Things are so much harder for those who come after us in the UK.
“Isn’t it right, therefore, that of the colossal wealth we have been able to accumulate, we should be able to leave a little bit more behind? That’s why I’m calling for a cut to inheritance tax.”
