Inheritance Tax is a TAX ON DEATH.
Main IHT Allowance: £325,000 per person
Private Residence Nil Rate Band: £125k Tax Year 2018/19, £150k Tax Year 2019/20 and £175k Tax Year 2020/21
- Meaning from April 2020 - each homeowner will have a £500,000 inheritance tax allowance, total £1m for married/civil
In addition: Gift Rules, Trusts, Business Property Relief, Agricultural Property Relief mean the wealthy can plan for extremely low and in some cases ZERO inheritance Tax on death.
THIINK TANK SUGGEST THIS MEANS THE WEALHY PAY DISPROPORTIONATELY LOWER TAXES
Lifetime Receipts Tax proposals:
- Tax the recipient/beneficiary
- All wealth receipts to be included (cannot avoid with gift rules, trusts, business/agricultural reliefs)
- £0-£125k = 0% tax
- £125k - £500k = 20% tax
- £500k + = 30% tax
Or copy much of the World and introduce a wealth tax.