Inheritance tax: Huge boost to Britons under plans being drawn up by Rishi Sunak

Sunak is hoping the move will boost Tory popularity in the polls, particularly in the Blue Wall.

The Conservative Party has taken a battering in its traditional shire heartlands in recent years, with the Liberal Democrats claiming by-election victories in Chesham & Amersham, North Shropshire and Tiverton & Honiton.

Tory MPs have voiced support for the Prime Minister’s potential tax-cutting move and hope it will kickstart an electoral recovery.

Lichfield MP Michael Fabricant, who served as Lord Commissioner of the Treasury from 2010 to 2012, told GB News: “Wealth should cascade down through the generations.

“We are already taxed on our income and most of the purchases we make so to tax the bequests of the dead seems over greedy.

“We all remember how family businesses and homes had to be broken up in the days of high inheritance tax during the Labour years.”

He added: “Any tax cut would be a popular move but inheritance taxes are a particular anathema to Conservative voters who tend to be prudent in their saving and hard-working in their business activities.”

Buckingham MP Greg Smith also said: “Inheritance tax has always been one of the most unjust taxes levied on people in the UK.

“It’s double taxation, where people are taxed through the nose building up their wealth, often modest wealth, then their children, family or whoever else they leave it to are taxed on it all over again.

“The Government is right to signal a cut to inheritance tax but equally needs to cut taxes across the board to relieve the pressure on people and get the economy growing.”

While Conservative MPs believe the proposed move could benefit the Prime Minister, a Labour MP suggested it showed the Tory Party true colours amid a cost-of-living crisis.

They told GB News: “I guess it shows where and what their priorities are.”

Sir Keir Starmer’s Labour Party is reportedly considering raising inheritance tax in a raid on middle class households which also included reversing the lifetime cap on tax-free pension savings and cancelling tax breaks for private schools.

Recent surveys suggest the Conservatives currently trails the Labour Party by between 12 and 18 per cent.

The Tories will also likely face an uphill challenge in next month’s local elections, with Conservative Party chairman Greg Hands warning 1,000 councillors could be ousted.

However, inheritance tax is deeply unpopular with a majority of British voters as Number 10 looks ahead to the next general election.

An opinion poll by YouGov found 63 per cent of respondents would support increasing the threshold.

Despite such opposition, most British families are not required to pay tax on the estate of a loved one who has died.

The latest statistics from Whitehall revealed just four per cent of deaths in the UK resulted in the paying of inheritance tax.

The standard inheritance tax rate of 40 per cent is applied on estates worth over the £325,000 threshold.

There is no charge if the value of an estate is below £325,000 or if it is left to a spouse, civil partner, charity or an amateur community sports club.

The threshold increases to £500,000 if the estate is handed over to children or grandchildren.