The UK government is reportedly in discussions regarding the abolition of the country's inheritance tax ahead of the next general election, according to a report by The Times. The discussions, described as "live" by senior government figures, are aimed at scrapping the unpopular levy next year.
The Telegraph, citing The Times' report, stated that both the office of Prime Minister Rishi Sunak and the Treasury did not deny the existence of these talks when questioned for comment.
The economic challenges faced by the UK have put pressure on Sunak's government to introduce pre-election measures to boost the performance of the Conservative Party. A national vote is scheduled to take place by January 2025.
In April, Bloomberg News reported that the Prime Minister was considering a reduction in the inheritance tax.
The inheritance tax primarily affects a small proportion of high-value estates, with its impact being felt more heavily by wealthier households in the Conservative Party's stronghold in Southern England. Consequently, a potential move to reduce or completely abolish the levy could have the effect of expanding the Tory voting base.
However, it is important to note that these discussions are currently at a preliminary stage and no conclusive decision has been made. The government is likely to carefully weigh the potential benefits and drawbacks of such a move before making any official announcement.