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    Budget 2024: Inheritance tax set to rise – here’s what it means for you

    Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseChancellor Rachel Reeves is reportedly planning changes to inheritance tax at the Budget as she looks to raise up to £40bn from tax hikes and spending cuts.While specifics remain unclear, any changes could significantly affect how much families pay on inherited properties and their financial futures.Here’s everything you need to know about the potential changes and what they could mean for your family. What is inheritance tax?Inheritance tax is a levy applied to the estate of someone who has passed away, but only around four per cent of families end up paying it, as most estates fall below the tax threshold. Key to this exemption is that anything left to a spouse or civil partner is not subject to inheritance tax, regardless of the estate’s value. For instance, if a deceased individual leaves their entire estate to their partner, even if valued at a million pound, no inheritance tax will be charged. However, this exemption does not extend to partners who live together but are not married or in a civil partnership. Each individual has a £325,000 inheritance tax-free allowance. Estates valued below this threshold incur no tax, while those above it are taxed at 40 per cent on the excess.What changes could be coming?The government has been exploring multiple avenues to increase revenue, particularly in light of a reported £40 billion budget shortfall, the BBC reported. Although specific measures to exemptions and reliefs have yet to be confirmed, discussions include revisiting existing rules surrounding gifts given during a person’s lifetime. Under current regulations, if an individual gives away more than £325,000 and dies within seven years, those gifts could still incur inheritance tax liabilities for the recipients. The new Budget could address specific reliefs for businesses and agricultural land, which currently have tax exemptions. However, the extent of the new changes remains unclear. What has the government said?Several ministers and the prime minister have promised taxes will not rise for “working people”, suggesting the wealthiest are likely to be hit hardest by new measures.Ahead of her first Budget, the chancellor refused to rule out hiking capital gains and inheritance tax. Setting the scene for a brutal financial statement, she said: “I think that we will have to increase taxes in the Budget.”Ms Reeves did not specify which taxes would rise, but said Labour would stick to its manifesto pledge not to hike national insurance, VAT or income tax.The chancellor said: “We had in our manifesto a commitment to fiscal rules to balance day-to-day spending through tax receipts, and by the end of the forecast period, to get debt down as a share of GDP.“Those are sensible fiscal rules to keep a grip of the public finances. We also made other commitments in our manifesto, not to increase national insurance, VAT or income tax for the duration and we’ll stick with those.”Shadow chancellor Jeremy Hunt criticised Labour’s fiscal plans, saying: “During the election we repeatedly warned that Labour’s sums didn’t add up and that they were planning to raise taxes. The real scandal is that despite planning these tax rises all along, they didn’t have the courage to admit it to the public during the election campaign.“Unfortunately, it looks like it will be people who have saved all their life to provide an inheritance to their family who will pay the price for Labour’s tax rises.”What does this mean to you?For families planning their estates, these potential changes would mean individuals need to further plan their finances. If inheritance tax rates increase or exemptions are altered, those intending to leave an inheritance may need to reassess their options to minimise tax liabilities. More

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    Primary schools urged to tackle Andrew Tate influence with healthy relationship classes

    Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseLondon primary schools are being encouraged to introduce healthy relationship classes as part of a new attempt to tackle the influence of Andrew Tate and combat violence against women.Teachers will be provided with online courses and toolkits to help them run classes and workshops in every school, Sadiq Khan announced on Friday. The move comes as research shows that young people are increasingly being exposed to misogynist influencers on social media.One in three young males have a positive view of Tate, polling from Savanta showed, while one in ten children have watched pornography by the time they are nine, research conducted by the Children’s Commissioner last year indicated. The Savanta survey, which spoke to 1,200 16-25 year-olds in June 2023, showed that 32 per cent of young men say they have a positive view of him, compared to just nine per cent of young women. Tate, who has described himself as the “king of toxic masculinity”, has millions of followers on social media and regularly expresses extreme views about women. He is currently facing charges of human trafficking, rape and exploiting women in Romania – allegations which he denies.The toolkit is aimed at teaching pupils about healthy and respectful relationships as part a wider attempt to tackle violence against women and girls.On Friday, the London mayor wrote to every primary school in London to highlight the importance of pupils learning about equality and respect, saying there has “never been a more important time to counter the pernicious influence of those who preach misogyny online”.He said: “Young people must learn about respectful relationships before they start seeing content from individuals like Andrew Tate online.”The new £1million toolkit, funded by the mayor and developed by educational experts Tender, uses workshops, drama and interactive sessions in the classroom to teach pupils between ages 9 and 11 what harmful behaviour looks like.The toolkit will be used by primary school teachers and supported by specially trained workshop leaders, City Hall said.Mr Khan said: “It’s never too early to start educating young Londoners about the need to treat one another fairly and kindly. And it’s important for young boys and girls to learn about equality and respect for one another.London Mayor Sadiq Khan announced a new healthy relationships toolkit More

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    Less than a third of voters trust the government as Labour’s woes intensify, poll suggests

    Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseLess than a third of voters have trust in the government as Labour’s woes intensify, according to a new poll.The Conservatives have also closed the gap with Labour to its lowest level since April 2022, when Boris Johnson was still prime minister. The Techne UK weekly tracker poll for The Independent will pile pressure on Sir Keir Starmer as he prepares for the toughest test of his premiership so far – this month’s Budget. Already a cabinet row over swingeing spending cuts has erupted into the open, even as the party tries to move on from controversies over freebies, tickets to Taylor Swift concerts and the decision to strip millions of pensioners of their winter fuel allowance.In a chaotic few weeks, Sir Keir has also been forced to sack his chief of staff Sue Gray and faced accusations he will break a manifesto pledge with tax rises in the Budget. Prime minister Sir Keir Starmer is preparing for the toughest test of his premiership so far, the Budget More

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    Voices: Independent readers name their priorities for Rachel Reeves’ looming Labour budget

    Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseWith a new Labour government in power and the first autumn statement on the horizon, we wanted to hear your economic priorities. When we asked what you thought should be included in the budget, responses from Independent readers varied widely.Many of you highlighted the need for a simpler, fairer tax system, with suggestions ranging from ensuring tax equality on capital gains and inherited wealth to introducing minimum VAT rates and increasing sin taxes.Others took a different approach, proposing that Britons contribute more directly to the services they use, such as introducing charges for GP visits or A&E attendance to alleviate pressure on the NHS.Here’s a closer look at your suggestions:Radical changesA complete overhaul of NI [national insurance] and ICT [investment tax credit].Currently, employment is taxed twice while unearned income is not.NI and ICT need to be combined into a single tax.Renters will pay more and workers less.The argument against this has always been that OAPs don’t pay NI. This can simply be addressed by adjusting the effective rate of the new combined tax for over 65s.Of course, such a change is too radical for any government and won’t be debated until the public begins to question why we pay so much more tax on earnings from work than other income.Ian Robinson‘Tax the most important factor’Tax is the most important matter facing this Labour Government.40bn is the right number to go for because this will start making a difference in defence, junior doctors’ and teachers’ salaries, potholes in roads, litter everywhere, local council funding, etc.You have to go where the money is. The 2024 rich survey has 220,000 people in UK with assets of $30mn or more ($30 mn is today’s definition of rich. 50 years ago it was $1mn. By 2035 it will be $200mn. Consisting of inherited wealth like the Duke of Westminster, Rausings (these pay little or no UK tax), tech (Autonomy – bless Lynch) PE, a few City bankers and lawyers). That adds up to 5.5 trillion pounds. A tax of 1 per cent or 2 per cent would go a long way and would hardly be missed by these people. I think 40 bn this year and every year is doable and necessary.gileschance‘I want to buy British’Ultra-low tax (green) manufacturing hubs with super low rents for them spread across the country. Almost everything I buy now mostly comes from China – there are excruciatingly few products seemingly made here. I want to buy British to keep the money in our country, but I can’t if basic essentials made in Britain are borderline extinct!Also: inventors hubs to help British people realise their ideas for useful products.Foxicus‘Wealth tax’Reeves should equalise capital gains tax and allowances with income tax for fairness with the proviso of indexation or taper relief on gains to allow for inflation. This will put those who derive income from capital gains on par with those who pay tax on employed and self-employed earnings. Cap agricultural relief on Inheritance tax at around £3 million – this would exempt and protect small family farms but remove the exemption to the super-rich who use investment in agricultural holdings to shelter from inheritance tax. A wealth tax on those with £10 million plus in assets combined with an exit tax on those that choose to desert the country to avoid tax.Kernow‘Charge to see a doctor’Make pension relief fair by giving everyone the same tax benefits. I suggest a 20 per cent relief.Limit the tax-free lump sum allowance to £100,000.There are probably very few people who benefit from the higher number.Scrap free prescriptions for anyone under pension age. If you’re really sick then it would continue as is, if recommended by a clinician.Charge £50 for every visit to see a doctor and the same for A&E at a hospital. All of these charges should be ploughed back into the NHS and used to finance working more closely with the private health sector. Recognise that the standalone NHS is a thing of the past.Going the other way, increase the income tax-free allowance in line with inflation.Charge a toll to drive on motorways, as per most countries.BlueButton‘Go back to self-certification’Revoke IR35 (off-payroll working rules). Causes chaos in resourcing for projects (therefore impacting productivity) and a load of red tape. Osbourne was heavily lobbied by the big consulting firms to bring in this monstrosity. Get rid of it and go back to self-certification which worked perfectly well.JonathanR‘More tax tiers’Up personal allowance with more tax tiers; lower tax levels for young people and disabled; treat bonuses as income; capital gains on second plus homes; close inheritance tax loopholes for super rich Iike the Grosvenors (inherited £8 billion in trusts, paid no tax); make large tax avoidance illegal including using offshore sites; any squillionaire like owner of Pimlico Plumbing boss leaving England because of government asking for reasonable payment of tax, ban them from returning! Good riddance! Cut financial support for royals who already have stacks of cash and land. Reduce rather than increase the tax burden on big employers. Financially support the arts. Tax breaks for longer-term investors in the UK providing training including apprenticeships and employment including for the disabled.Benitas‘Tax simplification’Massive tax simplification. The current tax code is over 20,000 pages long. There is no way it is effective. It’s full of distortions and ‘nudges’, and other weirdness. Neither HMRC nor the treasury can know what’s going on. In many ways it’s more valuable to get a good accountant than invest.Fix that mess, simplify, a lot.9Diamonds‘Minimum VAT’Introduce a minimum 1 per cent VAT collection rate across everything, but raise the sole trader tax allowance.SaintEtienne1961‘Spread the net wide’Spread the net wide – that way you get more feathers with less squawking.Up the sin taxes: booze, tobacco, gambling, fuel, flights.Up tax on dividends and capital gains.Mileage tax on electric cars to pay for roads.Stamp duty on investment transactions.Revise council house bands, so council tax better reflects value.Spend more on HMRC to reduce evasion.Philadelphian‘A tax on private health that goes to the NHS’Huge companies like Amazon, Shell etc MUST pay their proper taxes.Stop private health companies abusing the NHS: i.e a tax added that goes to the NHS.No more money for the royals. End subsidised food and drink for MPs. Former PMs to lose perks. Tax on private jets.flashfloydSome of the comments have been edited for this article. You can read the full discussion in the comments section of the original article here.All you have to do is sign up, submit your question and register your details – then you can then take part in the discussion. You can also sign up by clicking ‘log in’ on the top right-hand corner of the screen.Make sure you adhere to our community guidelines, which can be found here. For a full guide on how to comment click here. More

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    Kemi Badenoch says her first act as prime minister would be to restore tax breaks for private schools

    Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseTory leadership contender Kemi Badenoch has pledged her first action if she became prime minister would be to restore tax breaks for private schools. Ms Badenoch also described Labour’s plans to impose VAT as “cruel”, as she tried to woo Conservative members at a crucial stage of her campaign to replace Rishi Sunak.But the Brexiteer, who pledged to “cut through the crap” if she is elected party leader, also admitted much of the UK’s exit from the EU had not been a success.She told the Tory faithful: “We need to stop blaming Brexit for all our problems… and start fixing problems.” Conservative leadership contender Kemi Badenoch pictured at the debate More

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    Kemi Badenoch admits Brexit hasn’t been as successful as it should have been

    Tory party leader hopeful Kemi Badenoch admitted Brexit has not been as successful as it should have been.Ms Badenoch said the UK is “too scared to take advantage of the opportunities Brexit has presented” when she took part in a Conservative leadership debate against Robert Jenrick on GB News on Thursday (17 October).She said: “One of the reasons it has not been as successful as it should have been is because we didn’t start with a plan.”Ms Badenoch also claimed “everything is blamed on Brexit” despite countries around the world facing the same challenges. More

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    Robert Jenrick references Winston Churchill as he calls for foreign offenders to be deported

    Conservative Party leader hopeful Robert Jenrick referenced Winston Churchill as he called for Britain to leave the European Convention of Human Rights (EHCR).Mr Jenrick also called for foreign offenders to be deported as he took part in a Tory leadership debate against Kemi Badenoch on GB News on Thursday (17 October).When asked about keeping people safe, Mr Jenrick said his government would build more prisons.Mr Jenrick said: “We need to get the 10,000 foreign national offenders out of prison, that would be a good start.“When Churchill thought of the right to a family life he never thought of the idea of a foreign rapist or murderer having the right to stay in our country.” More

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    Kemi Badenoch slammed over ‘disgraceful’ and ‘wrong’ mental health claims in controversial pamphlet

    Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseTory leadership candidate Kemi Badenoch has been accused of endorsing “disgraceful” and “wrong” claims about mental health. The outcry comes after she launched a pamphlet that said the number of claims for mental health problems in Britain has “outpaced any conceivable clinical explanation”.The Mental Health Foundation attacked the statement as “wrong”, while NHS mental health director Claire Murdoch described the whole section on mental health as “disgraceful”.It comes just days after she was accused of “stigmatising” autism by backing different claims – in the same pamphlet – which suggested people with the condition get “economic advantages and protections”.The new row has been sparked by a claim in the same document, which includes contributions from 24 supporters of Ms Badenoch, that “the rise in welfare claims related to mental health, in the UK at least, has outpaced any conceivable clinical explanation.”Conservative Party leadership candidate Kemi Badenoch More