To think it’s unfair that some people get inheritance while others start with nothing?

Envy.

I absolutely agree and I'm amazed more people don't see it this way. I pay masses of income tax (I earn over 200k) and will also likely have plenty to leave to DS. It seems far better to incentivise working hard and earning well than make windfalls lower tax.

The housing market in this country is utterly fucked and the massive untaxed wealth transfer really exacerbates this.

I appreciate I will never win this argument though people are really weird about inheritance tax.

@irregularegular The good news is that as a 40% plus ( presumably) tax payer you are already doing your fair share to contribute.

So as I said my parents are dead but my friends all get financial help from their parents who are still alive...so if I hadn't got my inheritance, I'd be significantly disadvantaged compared to those who still have their parents. They have received help with house deposits, cars, childcare etc.

Yes we're clearly on the same page. But in a disappointingly small minority.

The average age to inherit in the UK is 61, so hardly giving youngsters a hand up in life.

In the case of income tax the government takes it because it needs money to run

Errr, what exactly do you think they do with the money raised from inheritance tax??

I'm on the receiving end and I agree with the OP.
I don't think inheritance should abolished, but it should be much more heavily taxed than it is.

My dc will be fine with in monetary terms but I think a more equal society would benefit them too.

@irregularegular maybe it's because we can see how ridiculously it disadvantages others & how we didn't do anything to actually earn it?

This is the op’s first and only post. It’s a windup.

And I work p/t because anything more I earn is taxed at 40%.

Yes I am focused on what others have. In particular, I'm focused on what people with lower wealth/income than me have and think they should have more. And I'm focused on how to achieve that through a relatively efficient, non-distortionary tax system. My belief that inheritance tax should be increased is not even remotely driven by jealousy. I have no desire for more money for myself. I received an above average (but not enormous) inheritance and expect some more from the in-laws. We have equity in property pushing £2 million, my husband has not reached retirement age but has maxed out his lifetime pension allowance (before that was abolished) and mine's pretty healthy too. The idea that the only possible reason I might want to increase taxes is that I'm jealous is miles off the mark and kind of annoying. I think it is time I move on....

@Hugsbunny I'm a higher rate tax payer as is DH. I would prefer to pay more of a hypothetical future inheritance (both parents and in-laws are millionaires) and pay less income tax or at least have the bands moved up.

I should be so lucky! I won’t get anything as parent in a rented property 😌

Whether it's inheritance tax or income tax no one actually owes that money. You certainly don't owe your life savings to anyone.

I haven't said you do owe anyone money

In the case of income tax the government takes it because it needs money to run (And to send it to secret off-shore accounts, but that's another matter).

So the government doesn't need money from inheritance tax or other wealth taxes?

People with more money are supposed to pay more not because they owe more, but because they can afford it. It's a practical thing. You rob from the rich because robbing from the poor doesn't work so well.

But the point is who is richer? The doctor who lives next door to me paying more than my mortgage in rent and higher taxes or my neighbour on the other side who is a retired postie without a mortgage & a holiday home.

Thank you @Hugsbunny - beautifully put.

I see your point that not everyone gets an inheritance and that seems unfair. However, after spending most of my adult life working and paying off a mortgage, I would like to be able to pass something on to my DC. Why should the government get everything I have worked for in tax.

The problem is if you couldn’t leave it as inheritance it would be a race to spend it all. And then who would pay the £1400 a week for their care care home? The answer is you would

When my last remaining parent died I had only just finished uni and started work, I was still living at home. Without my inheritance, I'd have been homeless...I was barely making enough money to rent a room at the time.

I was an adult but what about people who die leaving young dependent children? Should they really not be allowed to leave anything to their children?

Do you want fairness or do you want the best outcome for the disadvantaged? You really can't have both.

For the highest rate tax payer who are mostly likely to hit inheritance tax, the higher level of income they generate will be subject to 47% tax, so £100 will become £53. If they save that money, and leave that to their family on their death, that chunk of money will be subject to 40% inheritance tax, that is £21.20, leaving £31.80. That's a 62.8% tax rate effective on the money they earn.

That money pays for everyone elses schools, care, pensions disproprtionally. If you increase the tax, they will start being more likely to leave the country, make use of tax exemptions, or even just stop working earlier.

A similar thing happened in the 70s/80s when the top rate of tax was reduced from around 90% to 40%. The actual amount of tax paid went up because people were more incentivised to work and less inclined to skip the country or find exemptions.

The problem is that it's the same group of people, or actually families, who are expected to fund the rest during their lifetime and then after death as well - they work hard/smart, pay a lot of taxes, both income and capital, accumulate some wealth and then have to give it over.

@nearlylovemyusername do you have a source that higher tax payers are the ones who leave more inheritance? How do you know they haven't had to spend more on care or just lived life to the full? Plus thousands of very average earners in London have made a lot of money on property, some of it council housing.

Life is unfair and always has been. Just deal with it and bore off with your stupid ideas.