Senior Conservatives are stated to be discussing abolishing inheritance tax - at an annual price of £7billion to the Treasury - in a bid to win over voters forward of the following election.
Downing Street is in talks about whether or not to scrap the levy in an try to shore up votes in so-called "blue wall" seats forward of a basic election in 2025.
Supporters say it could possibly be a "gamechanger" within the south of England, the place the Tories concern shedding seats to opposition events, in keeping with The Times.
The discussions are being held simply days earlier than three Conservative by-elections happen on Thursday.
The votes might see Rishi Sunak turn into the primary prime minister since Harold Wilson in 1968 to concede three seats at by-elections on the identical day.
As the occasion trails Labour in official polls, axing inheritance tax could possibly be thought-about a manifesto pledge quite than a coverage to be carried out subsequent yr.
A supply instructed the newspaper: "It's about being an aspirational nation.
"You work hard, play hard and pass on your wealth. It's a live discussion."
Read extra:Everything you'll want to find out about by-election battlegrounds
What is inheritance tax?
Inheritance tax is a cost on the property - together with property, cash and possessions - of an individual who has died.
People with an property value lower than £325,000 often shouldn't have to pay inheritance tax, nevertheless, the worth ought to nonetheless be reported.
Anyone with an property above that worth is liable to pay a regular 40% tax on the quantity over the £325,000 threshold.
However, when you give away your house to your kids or grandchildren, the edge can rise to £500,000.
Two individuals co-habiting with joint house possession might solely have inheritance tax legal responsibility when one particular person dies and the worth of the property exceeds £650,000.
A partner or civil accomplice can move on as much as £1m together with their house with none inheritance tax legal responsibility.
The common home worth is £285,000, in keeping with the newest official figures.
But abolishing inheritance tax might price the Treasury as much as £7bn a yr because the nation continues to battle a price of dwelling disaster and inflation stays excessive.
A Treasury spokesperson stated the overwhelming majority of estates don't pay inheritance tax, with greater than 93% of estates forecast to have zero inheritance tax legal responsibility within the coming years.
However, they added: "The tax raises more than £7bn a year to help fund public services millions of us rely on daily."
Talks about inheritance tax come days after the federal government pledged to offer thousands and thousands of public sector staff together with academics and medical doctors a 6% pay rise.
Read extra:Millions of public sector staff get pay rise'On me personally' if inflation is not halved, says PM
The pay improve is not going to be funded by borrowing, Chancellor Jeremy Hunt has insisted.
A Downing Street supply stated of the inheritance tax claims: "The PM has repeatedly said that he wants to cut taxes for people.
"As Conservatives that's apparent, we would like individuals to maintain extra of their very own cash.
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"But the current economic situation means that the government is completely focused on halving inflation - to help people have more in their pockets at the end of each month.
"This form of future-scoping hypothesis simply is not on the PM's thoughts in the meanwhile and requires a unique form of financial atmosphere to the one we're working in."
Content Source: information.sky.com
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