Inheritance Tax: Tax Avoidance
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes in liability for inheritance tax on levels of tax avoidance.
Answered by James Murray
At Autumn Budget 2024, the Government took a number of difficult but necessary decisions on tax, welfare, and spending to restore economic stability, fix the public finances, and support public services. These were tough decisions given the situation we inherited from the previous administration, but the Government has done so in a way that makes the tax system fairer and more sustainable.
These decisions included reforming the inheritance tax rules on pensions, agricultural property relief, and business property relief.
The Government published a technical consultation on the changes to inheritance tax rules for pension funds and death benefits at https://www.gov.uk/government/consultations/inheritance-tax-on-pensions-liability-reporting-and-payment.
The Government also published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
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