How Will The Government Recoup Spending Post Covid-19?
The Covid-19 pandemic has changed society as we know it; from travel bans and restrictions to wearing face masks in public to lockdowns. As well as the impact on us all personally, businesses across the globe have been affected with loss of earnings.
The public cost of the pandemic is huge and unprecedented, with the government coffers keeping the country afloat for months and months. In an attempt to stabilise the economy and protect lives and jobs government funding spanned from paying furloughed employees salaries, business grants, paying self-employed people and the vast cost of providing PPE to frontline NHS workers. A BBC report suggests that the cost of the Coronavirus pandemic could cost between £263-£391 billion, although the final numbers cannot be known until the crisis is ended.
But how will all this be paid for in the long run? Future Tax Increases?
Whilst it is only speculation, there can be no doubt that this spending needs to be recouped in the future; tax increases would be a likely source of doing so.
In this scenario it is wise to consider your personal situation carefully and make plans in advance. Currently NHS workers and key workers are exempt from Inheritance Tax should they die from Covid-19 (although this has to be applied for and is not automatic).
However, Inheritance Tax and Death Taxes could be high on the list of ways to recover some of the spending.
Even before the pandemic there was discussion about reforming the very complex Inheritance Tax laws and the Probate costs.
Given the likelihood of tax increases now is an ideal time to assess your estate planning needs. It has never been more important to preserve your wealth for future generations. Our experts at Prepaid Probate are here to advise how you can save thousands on your probate fees and help with Inheritance Tax planning.