Chancellor Rishi Sunak’s next major economic policy to initiate a post-Covid recovery has been the subject of much speculation. Mr Sunak ruled out replacing cash with “Britcoin” today and said he would set out the government’s plans to “stay on the cutting edge of technology while protecting access to cash”. On LinkedIn, he wrote: “It is right that we are exploring the potential role of central bank digital currencies (CBDC) to understand the far-reaching opportunities and challenges they could bring.
“A CBDC would potentially be a new form of digital money issued by the Bank of England and used by households and businesses. It would coexist with cash and bank deposits.”
Some Britons may fear that Mr Sunak might consider tax increases to raise funds, and some suggest that property taxes might be the Chancellor’s path of choice.
In April, the International Monetary Fund (IMF) said, “To meet pandemic-related funding needs, policymakers could consider a temporary Covid-19 recovery contribution levied on high incomes or wealth.”
IMF Assistant Director of Financial Affairs Paolo Mauro added, “Governments could consider increasing taxes on property, capital gains and inheritance. “
The Treasury Department currently collects £ 5.3 billion in inheritance tax annually. Analysis by tax and advisory firm Blick Rothenberg shows that a one percent increase would bring in an additional £ 130 million annually, while a five percent increase would bring in an additional £ 650 million.
The standard inheritance tax rate is 40 percent. It will only be charged for the portion of your estate that is above the £ 325,000 threshold.
iNews reported in May that Mr. Sunak was “willing” to raise inheritance tax to raise billions from people’s wealth.
A senior government adviser said: “The tax increases will be preferentially introduced after the next election has been won due to a ‘Covid victory jump’.
“If that becomes the plan, then we can expect the next federal election in spring 2023 at the latest, since we will have to pay the bill for the pandemic in the” medium term “, as the Chancellor has already given the nation.” fair warning. “
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“As soon as the government makes proposals, there is a very good chance that they will have to find more money, and that has to be found somewhere. Taxation is clearly one way of doing this.
“Instead of taxing a 20-year-old with his income to pay for welfare for a 90-year-old with a home, inheritance tax could be a source of income.
“It wouldn’t be the most popular choice, a lot of people really hate inheritance tax, but then again, it’s about that fairness point.
“It’s about generating money to enable older people to lead dignified later lives with the care they need.”