Think-tank calls for IHT to be scrapped

The Resolution Foundation believes inheritance tax should be scrapped and replaced by a system that spreads the money more fairly between the generations and is harder to avoid. The think-tank has proposed replacing IHT with a lifetime receipts tax that would raise more for the state and would encourage families to pass their wealth to younger members. Under the proposal, each beneficiary would have a £125,000 inheritance allowance, above which they pay 20% up to £500,000 and 30% beyond that. Resolution estimates that the new tax would deter avoidance and raise £11bn a year in 2021, compared with £6bn under the present system.

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Posted 02/05/2018