Scrapping inheritance tax relief on Aim shares would be a disaster for Britain

Over recent years, government spending has risen sharply. Although much of this can be attributed to one-off expenditure during Covid, it’s inevitable that the pressures on the Government’s purse strings will remain beyond the general election. Whoever wins on July 4 will need to continue to rely heavily on its current tax take. Ultimately this will take its toll on UK companies. With the return of inflation, businesses are already under cost pressure as both wage and interest rates have risen. Even when UK interest rates are eventually cut, this often coincides with a recession. Combined with continued tax pressures, the toughest part of the business cycle is probably still ahead. As a result, investors in British plc are bracing for a difficult period. A large part of the additional tax take will come from freezing income tax thresholds into the future, as both main parties have committed to leaving income tax levels themselves unchanged, along with no increases in VAT. So how will all this spending be paid for? While nothing has been confirmed for certain as yet, there has been a lot of speculation as to whether either party could look to tinker with inheritance tax relief. This...

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