Reform 'only party' to pledge overhaul of Britain's 'most hated tax'

Based on the Saltus Wealth Index, the HM Revenue and Customs (HMRC) levy is the "most hated tax" among those aged 55 or over.

Despite this, Prime Minister Rishi Sunak and Sir Keir Starmer have avoided putting forward a plan to axe IHT ahead of voters heading to the polls on July 4.

Earlier this month, Farage dropped the bombshell policy of raising the inheritance tax's threshold from £325,000 to £2million.

This would effectively mean that thousands of estates at risk of being taxed by HMRC would no longer be liable for the levy.

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On top of this, Reform has promised to half the rate at which IHT is charged from its current level of 40 per cent.

Speaking exclusively to GB News, Saltus partner Jordan Gillies outlined why this could appeal to some older, wealthier voters.

He explained: "Inheritance tax is the ‘most hated tax’ amongst over 55s – the Conservative Party’s traditional voters – and 16 per cutting it should be ‘the biggest priority’ for the next Government, yet there is nothing at all in their manifesto about it.

"In fact, of all four of the main parties, Reform is the only one to even mention it. In their manifesto, they promise to abolish IHT for estates under £2million and cut the rate in half to 20 per cent for those that do have to pay it, which according to Saltus research is the rate the vast majority think IHT should be."

However, Saltus' research suggests that inheritance tax is only a priority for a small percentage of the electorate.

Despite often being branded the ‘UK’s most hated tax’, the Wealth Index Report suggests high net-worth individuals (HNWI) do not tax on wealth as much as many would believe.

Some six per cent of respondents admitted they believe IHT should be scrapped entirely,

One in ten of those polled consider inheritance tax to ‘least fair’ tax and 90 per cent believe its rate should be cut from 40 to 20 per cent, effectively agreeing with Reform.

When polling over 55s, the overwhelmingly believe IHT to be unfair, with 39 per cent of respondents naming it as the "most unfair tax".

Some 45 per cent of respondents in this age bracket think it should be removed entirely.

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Around 38 per cent of older Britons think inheritance tax should remain but at a lower rate with the majority wanting its rate to fall below 20 per cent.

It should be noted the majority (64 per cen) of HNWIs of all ages think they currently pay the right amount of tax.

Gianpaolo Mantini, a chartered financial partner at Saltus, added: "Pension reforms are often used to gain political points, and while in theory these ‘headline grabbing’ announcements sound positive, they are often not as straightforward as they sound, and generally come with plenty of caveats.

"Our report shows that HNWIs would like to see reforms and, while my clients would certainly welcome changes that make pension saving easier and more tax efficient, what they really want is clarity, certainty and refrain from constant adjustments, so that they can actually plan their retirement."