02 October 2023 , 17:00
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Millionaires in Jeremy Hunt’s own constituency will be amongst the biggest winners if he axes inheritance tax.
The Chancellor is considering giving the country’s most wealthy families a massive tax break by abolishing the levy. It is only paid by the richest 4% with couples able to hand up to £1million to their children without paying a penny.
Figures show that Kensington, Chelsea and Hammersmith would save three times as much as the whole of the North East of England if it is abolished. The HMRC data shows that households in the London neighbourhoods paid £201million in inheritance tax in the year to March 2020.
This area contains the constituencies of both Conservative Party chairman Greg Hands and Levelling Up Minister Felicity Buchan. The second most affected area is West Surrey, which includes Mr Hunt’s constituency, where £157million was paid. In comparison, across the whole of the North East the bill was just £61million.
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The current cost of abolishing inheritance tax would be £7billion. Critics including Gordon Brown have argued that millionaires must not be given the massive tax cut when the NHS is facing such problems. In an interview on LBC last week, Mr Brown said: “I don't think abolishing inheritance tax [is right] at a time when we are facing such huge problems in the National Health Service, social care and right across the board. There's rising poverty in our country. You can't really justify helping a few millionaires by giving them a bonus… When we've got so many problems that we've got to deal with at home.”
Mr Sunak has been silent on whether he is plotting the giveaway for millionaires. "I never would comment on tax speculation, of which there is always plenty," the Prime Minister said last week. Labour has claimed that if Mr Sunak scraps it, he would save himself £300million.
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