AROUND £15billion of headroom could be used to halve inheritance tax to 20 per cent in the Autumn Statement.
Chancellor Jeremy Hunt is still resisting calls to cut personal taxation in the Autumn Statement[/caption]
The Office for Budget Responsibility has indicated that billions of pounds of headroom means other taxes could be pared back instead.
Ahead of his twice-yearly fiscal update, Hunt said on Friday: “I can rule out any tax cut that is going to fuel inflation.”
Inheritance tax is currently 40 per cent on estates over £325,000, or over £1million for couples leaving a family home.
It is expected those thresholds would be hiked.
Mr Hunt will also spend £10billion extending the “full expensing” tax relief for big businesses to offset their investments against corporation tax.
While expensive, it is a pet policy of Prime Minister Rishi Sunak, saving firms 25p in tax on every £1 invested.