Death tax to catch thousands more in £1bn pandemic raid
The Telegraph says grieving families are set to be hit with a £1bn “stealth tax” grab. This is after Rishi Sunak revealed in his Budget that the government would cash in on inheritances to support public finances.
Speaking in parliament last week, Sunak revealed his five-year freeze on inheritance tax allowances would bring in £975m in extra money for HM Treasury.
The coronavirus pandemic has in no doubt causes a rise in deaths, pushing the tax rate to a new high by next year. The Telegraph adds, the annual haul of the death tax will jump to £6.6bn by 2026, up from the £5.1bn taken in by the taxman last year.
We look at this in more detail here.
Don’t wait to claim £13k in underpaid state pension
The Times delves into the Department for Work and Pensions’ “systemic failure” which led to 200,000 women being underpaid the state pension.
Those affected are to be reimbursed about £13,000 each on average, which means almost £3bn has been set aside to repay them.
This is something we went into more detail here.
Do you need fund managers? Boom in tracker funds as more investors go passive amid scepticism that stock pickers REALLY can beat the market
The Daily Mail reacts to news of the comeback of Neil Woodford by asking whether it is worth taking a chance with a stock picker. It reports that Hargreaves Lansdown reports a 60 per cent rise in customers buying index funds since 2018. These funds do not “pick” stocks and deliver the return of that market (UK Equities, US Equities etc) as simply and cost-effectively as possible. They now account for 18 per cent of the UK fund industry, up from 7 per cent ten years ago, with more than £250 billion invested.
You can find more on how we look at this here.