UK chancellor Sajid Javid has revealed scrapping inheritance tax is "something that's on my mind" and he "understands the arguments against that tax".
Speaking at a Conservative Party Conference fringe event in Manchester, the chancellor was asked if the government plans to scrap IHT. Javid replied that "sensible changes have already been made [to IHT] but it is something that is on my mind".
"I do think that when you pay taxes already through work or through investments and capital gains and other taxes there's a real issue with then asking them on that income to pay taxes all over again.
The levy is currently charged at 40% of estates worth more than the tax-free level of £325,000 - or £650,000 for a couple. Gifts of money, property or possessions made in the seven years before someone's death are liable to inheritance tax.
Fewer than 25,000 estates are liable for the tax each year - equating to less than 5% of all deaths.
The Conservative government has been increasing the thresholds for when IHT is payable since George Osborne announced at the 2015 Tory Conference that married couples will eventually be able to pass on £1m, including homes, without incurring IHT.
Earlier this month, it was revealed the government's receipts from inheritance tax climbed to a record £5.4bn for 2018-19.
"With the current uncertainty on the moving thresholds and figures of Inheritance Tax, it is now essential that we all take the time to assess how to gain transparency and clarity over the cost and processes involved in the passing of loved ones. Today, Brits are paying a startling record of £5.4bn in inheritance tax, and an increasing number of us are being directly affected by the charges," Dan Garrett, co-founder and CEO of the online will writing service, Farewill, said.
Javid's predecessor Philip Hammond ordered a comprehensive review of the "particularly complex" inheritance tax regime in 2018 and asked for proposals for simplification.
Javid also said there would be a Budget before the end of the year.