In a report published today 29th January 2020, MPs have asked the government to cut inheritance tax (IHT) from 40% to 10%.
The report suggests all tax reliefs on inheritance tax should be scrapped and replaced with the flat rate tax of 10% and only rising to a maximum of 20% on death net estates over £2 million in value.
MP John Stevenson, Chairman of the All Party Parliamentary Group on Inheritance Tax and Intergenerational Fairness (APPG) said: “Politicians feel strongly about the tax and how unfair it is”. He added: “Hard working people are penalised and the rich get away without paying IHT, our proposals are to make IHT simple and fair. Ensuring higher value estates pay some IHT and not have so many reliefs”.
In other words, let's tax everyone not just those with estates worth £325,000 or more.