Interesting article; there is little doubt that we need to rebalance wealth inequality but I worry that, as usual, the people who will suffer are those of us at the bottom end whilst those at the top pay accountants and lawyers to ensure they avoid paying. My father paid his taxes all his life and recently left me a modest sum which will help me buy my own property when my husband and I part company soon and split the proceeds of our home. I'm way too old to get a mortgage and am running out of employment opportunities. Why should I pay tax on monies my father earned and has already paid tax on? Why shouldn't my sister invest in property to help build a pension for herself, when her employment hasn't come with pension opportunities? What you are proposing runs the risk of penalising those of us that have struggled all our lives, and whilst dealing with the death of a parent, have to worry about what it's going to cost us.
Thanks for commenting. Yes, to make the system fairer, it is necessary to reform the widely exploited system of loopholes and exemptions. Estates of £2-3 million, eg, paid 20% in inheritance tax on average in 2018 while those over £10 million paid only 10%. On the other hand only a tiny proportion of the population pay inheritance and capital gains tax. t only 3.7 per cent of deaths in the UK result in an inheritance tax charge. This compares with 10 per cent in Germany, and 9.3 per cent in Japan. Only 265,000 pay tax on capital gains .
Thanks for this Will, also an interesting read. Clearly I fit into some of the attitudes and concerns expressed! I certainly agree that this needs more discussion, and that if the sort of nuanced proposal suggested were put forward, it would get support, as it should. But I still worry that those with the deepest pockets will find ways around it.
Interesting article; there is little doubt that we need to rebalance wealth inequality but I worry that, as usual, the people who will suffer are those of us at the bottom end whilst those at the top pay accountants and lawyers to ensure they avoid paying. My father paid his taxes all his life and recently left me a modest sum which will help me buy my own property when my husband and I part company soon and split the proceeds of our home. I'm way too old to get a mortgage and am running out of employment opportunities. Why should I pay tax on monies my father earned and has already paid tax on? Why shouldn't my sister invest in property to help build a pension for herself, when her employment hasn't come with pension opportunities? What you are proposing runs the risk of penalising those of us that have struggled all our lives, and whilst dealing with the death of a parent, have to worry about what it's going to cost us.
Dear Joanne
Thanks for commenting. Yes, to make the system fairer, it is necessary to reform the widely exploited system of loopholes and exemptions. Estates of £2-3 million, eg, paid 20% in inheritance tax on average in 2018 while those over £10 million paid only 10%. On the other hand only a tiny proportion of the population pay inheritance and capital gains tax. t only 3.7 per cent of deaths in the UK result in an inheritance tax charge. This compares with 10 per cent in Germany, and 9.3 per cent in Japan. Only 265,000 pay tax on capital gains .
Stewart Lansley
Hi Joanne - many thanks for the reply. I recommend this report by Demos on inheritance tax - worth a read: https://demos.co.uk/wp-content/uploads/2023/06/the-inheritance-tax-puzzle-final-june-2023-demos.pdf
Thanks for this Will, also an interesting read. Clearly I fit into some of the attitudes and concerns expressed! I certainly agree that this needs more discussion, and that if the sort of nuanced proposal suggested were put forward, it would get support, as it should. But I still worry that those with the deepest pockets will find ways around it.
Hi
Interesting read. Useful info for political conversations and campaigning. What’s included in the bottom row of chart 2? ‘Other taxes and receipts’?
See https://researchbriefings.files.parliament.uk/documents/CBP-8513/CBP-8513.pdf
Thanks