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Inheritance Tax “Too Toxic” to Save According to Thinktank

A thinktank has proposed that inheritance tax should be scrapped after finding that opposition to the levy from across the political spectrum means it is simply “too toxic” to save.

The suggestions come from the Fabian Society said that the evidence they had collected following the General Election suggested that many voters, regardless of political allegiance were equally opposed to inheritance tax. Research shows that many of those questioned believed that such a tax was unfair and instead called for the current rules to be replaced by the levying of income tax on gifts and bequests.

General secretary of the Fabian Society, Andrew Harrop said that the results of an across the board opposition to inheritance tax were surprising. He said: “The public see the value of the tax system, and they want it to be fairer, simpler and more progressive.

“But some taxes are now beyond the pale, even for people who are supportive of progressive measures. Inheritance tax is seen as unfair and insensitive even by left-leaning voters, and has become too toxic to save.”

Harrop also added that he believed that levying income tax on those receiving inheritances would be a good alternative to inheritance tax. Currently under Government reforms pensions can be inherited but those benefiting have to pay income tax.

Opposition to Inheritance Tax

A report into inheritance tax found that there was no barrier to those opposed whether it be age, gender or even voting preference. One of the major issues with inheritance tax is that it is levied at a time of distress or when “people are suffering most”.

The most cited reason for opposition to inheritance tax was that inherited wealth was subject to “double taxation” as people had "worked, saved and paid taxes, but were then subjected to more taxation when the estate was handed over." According to recent figures in a report to the House of Commons 28,000 estates paid inheritance tax in 2013-14, raising £3.4bn.

According to the report, people had been punished for doing “the right thing by working hard, saving and trying to better themselves and their families in the future.”

The author of the study said: Daisy-Rose Srblin, author of the report, said: “Contrary to the political status quo, we found a clear appetite for taxation at levels which are low, but not low at all costs – taxpayers understand that they must pay in to sustain desired levels of public services. However, it is clear that reform is needed."

Making A Will: Contact Us

Inheritance Tax is paid if on an estate if a person reaches the inheritance threshold of £325,000 when they die. A will can often prove vital in reducing the amount of inheritance tax and ensuring that some gifts and possessions are passed to loved ones without having to pay as much inheritance tax.

While many people believe that making a will is too expensive and that they do not need to make a will as they are only passing items on to certain people, a will is a good way to protect your estate and ensure that your loved ones are protected when you are gone. While a will may seem relatively expensive, such a document can result in significant savings in the long run.

If you require the advice of our Liverpool-based family lawyers regarding the creation of a will or any other legal document, contact us today using our online contact form

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