Inheritance Tax Booms Past £1.5 Billion in Two Months
What’s the story? HM Revenue & Customs just released the latest haul from the inheritance tax pot. In the first half‑year of the tax year, the government pulled in a whopping £1.5 billion – a tidy £98 million more than last year. The climb has been steady over the last twenty years, turning the tax into a rising star in the UK’s fiscal skyline.
Why the Haul Matters
- Upper‑class: the tax is rattling pockets that were once considered untouchable.
- Policy twist: whispers suggest the Chancellor might reverse the rule that made UK non‑resident “non‑doms” pay tax on their worldwide assets.
- Impact: the decision was originally projected to gulp another £430 million a year into the Treasury.
Expert Take – Nicholas Hyett’s Hot Take
“If the rumours aren’t just chatter, a policy flip is probably due to the exodus of wealthy non‑doms in the last six months,” says Hyett, Investment Manager at Wealth Club. “When people leave, the tax’s bite shrinks, and the UK loses the cash flow, investment, and philanthropy those gold‑starved residents usually bring along.”
It’s no surprise the government is warning for a U‑turn.
Why “U‑turn” is a big deal: Inheritance levy changes have always felt the easiest escape route. City cappers need UK salaries, super‑rich can jump ship to any dot on the globe. The country has all the charm, but dropping 40% of family wealth is a hard sell. It’s sadly a case where the gov will only respond once numbers scream louder than the whispers.
The Heavy-Handed Hex
Non‑dom advisers are whispering that over a third of their clients are eyeing greener tax soils – some have already tacked on the exit. The government’s proposed twist could trigger a ‘big horse bolting’ moment: plans are hard‑set and future changes from a treacherous bigger‑cash‑worrying ministry are a looming nightmare.
Feared Fallout on AIM
Recent rumblings show the Deputy PM pushing to abolish IHT relief for AIM-listed companies – just months after a 50% relief plan hit the whiteboards. Why that’s the gut‑tinger news for AIM: A call to chop away that safety net could dry up fresh investments, stifling UK start‑ups’ appetite to raise fresh capital and making the capital‑gathering landscape bleak.
In short, the police raids on historically IHT‑free assets – pensions, private shares, AIM shares – are creating a boom‑boomer wave of uncertainty that turns people away from big‑ticket investments.
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