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. The outside of the BBC building in London with people walking in front of it

    Levelling the playing field: The BBC, Big Tech, and the case for a bold charter

    The upcoming charter renewal is the moment to give the BBC the resources, freedom and mission it needs to engage with technology firms on its own terms.
  2. A lighthouse shines a light into a dark seascape at the edge of a cliff on the coast of Wales

    Britain's strategy for a decade of danger: Our nation, our continent, our world

    Britain's foreign policy needs a grand strategy that clearly defines the country’s strategy for security, growth and migration.

  3. Will planning reform make housing more affordable?

    It is undeniable that housing in England is in crisis.