Death and Taxes: Why Inheritance Tax should be replaced with a Capital Receipts Tax

Article

There is a strong case on the grounds of equality of opportunity for taxing inheritances. Large inheritances give some people an unfair and unearned advantage in life.

Supporters of taxes on wealth in the UK have weakened their case by defending the current Inheritance Tax regime in spite of its deficiencies. Inheritance Tax as presently formulated is highly unpopular, raises little money and can be avoided by the very wealthy. It is also not a tax on inheritances, but a tax on estates. It could be reformed, but a better option would be to abolish it and replace it with a Capital Receipts Tax.

A Capital Receipts Tax would be a fairer means of increasing equality of opportunity. The UK should introduce a progressive tax on lifetime gifts above a certain threshold.

Related items

  1. Dramatic high-angle drone photograph of decommissioned oil platforms anchored in the Cromarty Firth, near Invergordon, Scotland, as the sun sets over a calm North Sea

    Allies for delivery: Rebuilding faith in Scottish politics via the North Sea

    Can Scottish politicians still build enough of a consensus to deliver meaningful change for disillusioned voters?
  2. A busy high street in Kingston-upon-Thames, London. Shoppers walking beneath multi-coloured bunting

    Bricks vs clicks: The case for an online sales tax

    It's time to rethink how we tax retail.
  3. A pound coin sits on top of a newspaper showing an image of a line graph

    Cost of living, economic growth and stability: How to make this autumn budget a success

    In the autumn budget the chancellor can take three steps towards improving people's living standards.