Reform UK MP Lee Anderson has slammed Labour about their plans to increase inheritance tax in the Spring Statement on March 26.
Treasury Minister James Murray said: “The Office for Budget Responsibility (OBR) has been commissioned for an Economic and Fiscal Forecast, which will be published on 26 March 2025.
“This is in line with the Budget Responsibility and National Audit Act 2011 which requires the OBR to produce two forecasts each financial year.
“This will be accompanied by a statement to Parliament from the Chancellor of the Exchequer.
“The government set out its plans for inheritance tax in Autumn Budget 2024, including fixing the nil-rate band and residence nil-rate band at their current levels for a further two years in 2028-29 and 2029-30.”
“The Government remains committed to one major fiscal event a year to give families and businesses stability and certainty on upcoming tax and spending changes and, in turn, to support the Government’s growth mission.”
What is Inheritance Tax?
Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who’s died.
There’s normally no Inheritance Tax to pay if either:
- the value of your estate is below the £325,000 threshold
- you leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club
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The government has previously announced that the inheritance tax (IHT) threshold will remain frozen at £325,000 until 2027/2028.
The residence nil-rate band will also be frozen at £175,000.
Some gifts you give while you’re alive may be taxed after your death. Depending on when you gave the gift, ‘taper relief’ might mean the Inheritance Tax charged on the gift is less than 40%.
