Peston warns of 'unacceptable' inheritance tax

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Peston warns of 'unacceptable' inheritance tax

Peston has warned that the UK market will be adversely affected if inheritance tax is abolished. The co-host of the podcast, Rest is Money, said that most people will never pay the levy because it only affects the highest earners. The Tory Party has been pressured to change or abolish inheritance tax, with former prime minister Liz Truss among those advocating for it to be axed. Rishi Sunak is rumored to be mulling reform ahead of the next general election. Many campaigners who have protested against the tax will be able to get relief from the scrapping of the levy. Britons label it the'most hated tax' for the Government to earn revenue from people after it already has been taxed on earnings. Despite calls for the tax to be scrapped, Peston and presenter Steph McGovern explored the implications of possible abolishment, stressing that it could cause difficulties for the UK's economy. explaining the issue, Ms McGovern said : '' There are a lot of loopholes where the very rich get around this by giving people £3,000 a year because it's tax-free or the impact on the alternative investment market. ''

Prime minister Rishi Sunak has said he is working to cut inheritance tax ahead of the next general election. The reform of the tax could see the abolishment of inheritance tax, according to the Sunday Times. Inheritance tax is 40 percent for estates that are worth more than £325,000, with an extra £175,000 allowance to a main residence if it is passed to children or grandchildren. A married couple can share their income, enabling parents to pass on an income of up to $1 million to their children without tax being paid.