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Will inheritance tax go up to 80pc?

100bn: that is what the extra spending on public services, income support for workers and business, tax deferrals and other benefits is expected to cost.

As a nation we are going to be borrowing the same amount of money as we make this year, analysts have predicted, meaning our deficit is on track to be the highest since World War II. The Government is very soon going to have to work out how this money will be clawed back – and the taxman may already be eyeing up your savings.

Some think tanks have said the wealthy should foot the bill via a special tax on the rich. This is what happened after the Second World War when inheritance tax (IHT) was raised to 80pc, and the wealthiest paid income tax of 97.5pc on the highest portion of their earnings.

Others have suggested money could be raised by scrapping the “triple lock”, which guarantees state pensions rise each year by the highest of wage growth, inflation or 2.5pc.

One group that is almost certain to feel a tax bite is the self-employed, who have up to now enjoyed relatively generous relief on their income. When announcing his rescue package for freelancers and sole traders, Chancellor Rishi Sunak warned that in the future workers who want access to state support to be equal would have to pay into the system equally.

We gave readers the chance to wade in on how they thought the extra spending during the pandemic should be paid for. Some suggested scrapping the HS2 rail link while others backed increasing tariffs on imports of goods we can produce in Britain. What do you think? It's not too late to add your comments here.

Whatever the Government decides to do, you don't have to be a helpless victim of the taxman. Here are four ways you can legitimately cut your tax bill which could leave you thousands of pounds better off.

And for those concerned about an impending rise in IHT? We have a four-part series on how to beat the death tax and leave your family with the best legacy possible.

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Here's what our readers said

In our comments section, Chris Tinley said of 'I lost 66,000 after St. James's Place botched my pension transfer': "I can't imagine any circumstances where giving up a defined benefit pension scheme that is still working is a good idea. The point is that a pension isn't a get rich scheme and I would have thought that certainty of income for your pension would be the main driver. If you have additional expendable income then by all means gamble away, but leave the bread and butter well alone."

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