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AIBU?

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Original poster

Labour should increase inheritance tax to 50 per cent

309 replies

Tummyachey · 01/08/2025 17:19

If they did this it would raise billions of pounds - while avoiding raising taxes on working people. Exemptions should be put in place to protect small businesses; I accept this would be complicated, but they need to try and make it work.
So much money could be raised and it would also encourage earlier wealth transfers which would stimulate the economy. In addition, it would help redistribute wealth thus reducing inequality.
There would be political backlash, of course, but they need to get the economy growing and should act now so that the results are visible in time for the next general election.

OP posts:
Marylou2 · 01/08/2025 17:31

Hilarious. A friday funny if ever there was one.

AmateurNoun · 01/08/2025 17:31

Labour have also recently made changes to IHT to raise ~£2B/year including IHT on pensions and APR/BPR reform. How much more do you think they can squeeze out of it realistically?

FortheloveofCheesus · 01/08/2025 17:30

Right, take more money off people who have actually worked

Except for that a lot of what is taxed is accumulated wealth rather than earned - wealthy families who pass large estates down. The iht exemptions etc mean the vast majority of ordinary working people don't pay it, including most small farmers and small business owners.

GasPanic · 01/08/2025 17:29

They'd be better off closing the loopholes on avoidance.

Inheritance tax is a massively misunderstood tax.

The vast majority of people seem to have a huge aversion to it, even if their estates won't actually pay it. The % of estates that pay it at the moment is around 4%. It's genuinely weird how much the public misunderstand it.

MyUmberSeal · 01/08/2025 17:29

Freaky Friday on MN.

FortheloveofCheesus · 01/08/2025 17:28

Exemptions should be put in place to protect small businesses

This already exists so no complexity there.

I have no issue with it. I'd lose out some on my parents estate but its not my money & they can't take it with them so.

AmateurNoun · 01/08/2025 17:28

IHT doesn't even raise much as much as people think m at the current rate - approx £8B.

I suspect people would go to even greater lengths to avoid it if the rate goes up.

OneNeatBlueOrca · 01/08/2025 17:27

Meanwhile, how much of the country is signed off sick with anxiety?

Right, take more money off people who have actually worked

Chiseltip · 01/08/2025 17:25

🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

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