Martin Lewis has explained why only very few number of households will ever pay inheritance tax.
Scrapping of the so-called death duty is being touted by Tory ministers in the run-up to the budget in March as the party looks to boost its election chances.
But one of the things that the party has been thus far unwilling to admit is that inheritance tax only affects a very small number of households in the UK.
The most recent HMRC statistics show less than 4 per cent of estates paid inheritance tax in 2020–21.
That is because estates can be handed down through the family often up to the value of £1 million if allowances get transferred, which they often are.
Explaining the complex system, money saving expert Martin Lewis has set out how the duty actually works:
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