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. A wide shot of several large commercial vessels, including oil tankers and a survey boat, floating on turquoise water. In the background, an industrial shoreline with numerous smokestacks and refinery infrastructure is visible under a cloudy sky. Concept of global logistics, maritime industry, and international trade.

    Price caps and economic stability: How to manage the Iran war energy shock?

    The Iran war energy shock will impose significant costs on the UK economy, even if the government does not offer a universal support package.

  2. The political trust crisis: Why local democracy must start listening again

    A troubling reality hangs over May’s local elections: trust in politics has collapsed.
  3. Close Up Of Female Care Worker In Uniform Holding Hands Of Senior Man Sitting In Care Home Lounge

    Putting cardiovascular disease at the heart of policymaking: Learning from research in the devolved nations

    Deaths from heart attacks and strokes have halved since the 1960s and people living with these conditions have seen remarkable improvements in managing and treating them. But now progress is stalling.