Should the government scrap inheritance tax?
Inheritance tax is charged at 40% on the value of a UK estate above £325,000, or £500,000 when a main home passes to direct descendants. Thresholds remain frozen until 2031, and the tax raised £8.4 billion in 2024/25. From April 2026, reliefs on agricultural and business property face a £1 million combined cap, and unused pension funds enter the estate from 2027.
15 Opinions
Taxes have to be raised - the questions are : how much and by what means. IHT captures too many ordinary people at the current level. I've already paid tax on the money I've earned.
But it should be reformed to stop the super wealthy paying to exploit loopholes. And it should apply to everyone, royals et al.
Some of the inheritance tax is on assets that have appreciated in value rather than earned. If worried about suffering tax give as much of it to your descendants as possible. This would actually help the economy more as that money would likely be spent.
It's taxed through their lifetimes. The rich already avoid it through trusts, so who is it exactly taxing...?
Social mobility is getting worse, not better. Many boomers have built up wealth from the dysfunctional property market which they have done absolutely nothing to earn. The IHT exemptions for property should be abolished, there should be progressively higher rates for larger estates, and we should stop forgiving capital gains tax at death.
It's simply theft. the Govt deciding that when you die, it can decide how much of your lifetime of saving it wants to steal, and then leave your family the rest. It distorts business & investment decisions and is morally repugnant.
Shouldn’t scrap but maybe lower it.
The system is fair as it is at the moment.
Inheritance tax is extremely distortionary, the fact a primary residence isn’t taxed but other assets are prevents otherwise rational downsizing. It also discourages savings, which are beneficial for society
Inheritance tax is one of the fairest and least regressive taxes, I know I often stand alone being generalpy right of contre in views but I don't understand when we can use inheritance to take pressure of income and NI we continue to have such high limits let alone consider scrapping it