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.
10 Opinions
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
This isn't a good tax, particularly for the "stately home" group of people, who can end up selling the property and possessions. Not sure how many are left, a check on the income of the residents? The building quite often is turned into flats. Then businesses, needs a rethink here, so they aren't forced to close. Raise the threshold when inheritance tax comes into play..
Inheritance tax is outright theft and should not exist. The idea that it only affects the wealthy is for the birds - the thresholds are not very high and includes the family home. If you have paid all your taxes throughout your life, how can the government swoop in and tax again when you die?
Yes, tax on many times taxed money/wealth someone saved over live is an ugly theft. All taxation nowadays is theft, but this one seem particularly repulsive.
Not entirely, no. But it shouldn't be punitive. It also shouldn't have a detrimental effect on the ability to pass on businesses as a going concern. Often, as with farms, where property value might make it seem like it is a large inheritance, that value is only realised if the land is sold.
The UK can’t afford to cancel this tax, which primarily affects the wealthy