Experts have backed the notion that Chancellor Sajid Javid could scrap Inheritance Tax.

Mr Javid made the revelation at the Conservative Party Conference when, speaking at a fringe event held by the Institute of Economic Affairs and the Taxpayers' Alliance, he was asked if he would do away with death duties.

He said: “I shouldn't say too much now but I understand the arguments against that tax.

“You pay taxes already through work or through investments and your capital gains in other taxes, there is a real issue with then asking them to, on that income, to pay taxes all over again.

“Sensible changes have already been made but it's something that's on my mind.”

Any movement towards eliminating IHT was welcomed by Shona Lowe, private client and corporate director at 1825.

She said: “Scrapping Inheritance Tax completely would see families across the country rejoice.

“But, the real question is whether the Government coffers would stomach such a significant loss in revenue without making other changes to the taxation regime.

“Whatever happens in the future, whether that’s abolition or simplification, Inheritance Tax remains a real issue for people now.

“Planning for it shouldn’t be ignored because change might be coming.

“Good succession planning isn’t ever just about tax, having an up to date will in place remains as vital as ever when it comes to making sure as much as possible of a person’s estate passes as they would have wanted. 

“Change of any scale can be complex to navigate.

“This is why it’s so important to seek specialist tax and succession planning advice.”

Miles Dean, head of international tax at Andersen Tax UK, said: “The chancellor is right to consider scrapping Inheritance Tax.

“It is difficult to justify that assets acquired using taxed income are then taxed again on death.

“If it is not abolished then the threshold should be significantly increased to take account of the fact that the average house price in the U.K. is £233k and that the London average is £478k.

“It cannot be right that people whose wealth is tied primarily in their own home are often forced to sell the property in order to fund the Inheritance Tax due on death.”

He added: “Reducing the rate to something like 10% over an increased nil rate band threshold could also be a solution, if there were good arguments against abolishing the tax altogether.

“Unfortunately it’s a double edged sword.

“Tax is divisive and inheritance tax more so than any other.

“The Left say inheritance tax should be increased substantially and that there are too many exemptions whilst the Right appear to want to reduce it.

“The chancellor is therefore damned if he does and damned if he doesn’t.”