Sajid Javid hints at scrapping inheritance tax in his first Budget as Chancellor
2 min read
Sajid Javid has hinted that he could scrap inheritance tax in the Budget.
The Chancellor said he was uneasy about making people "pay taxes all over again" when they die.
Speaking at a Conservative Party conference fringe event he said that his first Budget - which will take place this year - “will include tax changes”.
And he said the possibility of getting rid of inheritance tax - a move which would benefit wealthy homeowners - was "on my mind".
Current rules on inheritance tax mean a 40% levy is charged on the estate of someone who has died, if the total value of their assets is above the £325,000 threshold.
Nothing is paid if everything is left to a spouse, civil partner or charity, and the threshold can be increased to £475,000 if left to the person’s children or grandchildren.
Asked by an audience member at the fringe event if he would consider getting rid of the tax, the Chancellor replied: "First of all we've already made some sensible reforms on that tax.
"But I hear what you're saying, you're not the only one, I shouldn't say too much now, but I understand the arguments against that tax.
"I do think that when people have paid taxes already through work, or through investments and capital gains and other taxes, that there's a real issue with asking them on that income to pay taxes all over again.
"Sensible changes have already been made, but it is something that’s on my mind."
At the same event, Mr Javid also said that if the cost of HS2 hit a certain figure he would be willing to scrap the controversial rail project.
Asked what that was he said the number was "in my head", and when pressed on how many digits is had he replied: "I think in billions.”
The cost of the high-speed train link connecting London, Midlands and the North has spiralled by £30billion beyond its original £56billion budget, with transport secretary Grant Shapps launching a review.
PoliticsHome Newsletters
PoliticsHome provides the most comprehensive coverage of UK politics anywhere on the web, offering high quality original reporting and analysis: Subscribe
