Labour should increase inheritance tax to 50 per cent

The redistribution of wealth is generally a socialist principle, and most social democracies have some kind of nod to this in their statutes. It's just about redressing the inevitable inequality which springs from capitalism and generational wealth-hoarding.

The redistribution of wealth is generally a socialist principle, and most social democracies have some kind of nod to this in their statutes. It's just about redressing the inevitable inequality which springs from capitalism and generational wealth-hoarding.

Isn’t that Communism?

The art of taxation, @Tummyachey , is the art of plucking the goose to get the most feathers with the least pecking and hissing. Attributed to a c16th French finance minister (Colbert IIRC).

We (DH and I, both edging 70, and verging on retirement) are considering exactly this decision. Financially and tax wise, we would definitely be better off selling everything in the UK and moving to say, Antigua. It's English speaking, and citizenship is available for an investment of $120k. There is no IHT and English common law. Provided we buy decent health insurance for us both, and choose a house with adequate water storage and solar panels/batteries, then there's a lovely sunny life to live while we last.

Or a European country with a retirement visa system: again, I'd be paying medical insurance premiums but in, say, Portugal I'd also only be paying tax on income at 10%. No IHT.

In reality, I don't like the Caribbean (apart from the beaches) and I don't want my DH to have his next health crisis (there will be one) in a country where I am not really fluent enough in the language to speak to the doctor. I can do so in French and in another year, I would hope to be able to do so in Gallego Spanish/Portuguese. In reality, I shall aim to arrange our estate in the best interests of our DC, including PETs for a house, and cross my fingers that nothing goes too badly wrong too soon.

You have a lot to say, but none of it is constructive. Where would you rather we get the money from? Taxing business further? Taxing living, working people more? No - didn’t think so.

Then what’s the point of owning anything at all?
Honestly, don’t you think your existence is already enough of a burden on the state’s balance sheet?
Every time these threads pop up, the underlying message is the same: success or financial prudence should be punished, not rewarded.
Want redistribution? Fine. But do it fairly. Don’t punish people for doing the right thing.
Oh, here we go again. Another “tax the dead” thinkpiece from someone who clearly assumes that anyone inheriting a house must be clinking glasses of Dom Pérignon while wiping their tears with hundred-pound notes.
In my opinion, inheritance tax should be abolished—50%?! HALF?! That’s not taxation; that’s legalized looting under a Labour badge.
And before anyone pipes up with, “It’s only the rich” — have you seen house prices in the South East? Ordinary families are getting stung just for inheriting a bog-standard semi in Croydon. We’re not talking landed estates and private jets here. Some of us just had parents who bought a house in 1973 for 12p and a packet of crisps.
As for this fantasy that it’ll “encourage earlier wealth transfers” — what, are we meant to hand out our life savings at 40 and just hope we don’t need a care home later? Try funding decent elder care when your so-called “wealth” has been hoovered up by the council.
And yes, I’d love to see them “exempt small businesses” — but we all know how that ends. Mega-corps will wriggle through custom-made loopholes while Bob from Barnsley gets hammered for trying to pass on his plumbing business to his lad.
Want to reduce inequality? Fab. Go after corporate tax dodging and offshore trickery. But punishing families who’ve scraped, saved, and behaved responsibly isn’t progressive — it’s lazy, short-sighted policy wrapped in class envy.
Anyway, must dash. Off to tell my mum that apparently the best thing she can do for Britain is die and donate her house to HMRC.
A few actual points, if anyone’s still reading:
Disincentivises Hard Work and Saving
Many families work for generations to build up modest assets — not out of privilege, but sheer effort. Hiking inheritance tax sends a clear signal: don’t bother being responsible, we’ll take it off you anyway.
Encourages Tax Avoidance
Jack up the rate, and the ultra-wealthy will just slide even more into trusts, offshore accounts, and “creative” structures. The rich will dodge it, the middle will foot the bill.
Hits More Than Just the Rich
With property inflation, that £325k threshold is laughably outdated. A bog-standard family home in many areas now crosses it, dragging in people who never saw themselves as “wealthy.”
Undermines Intergenerational Support
Older generations often save to help their kids — with uni fees, house deposits, even childcare. Strip that away and you’re weakening the very social fabric that keeps many families afloat.
Risk of Capital Flight
Push too far, and people — especially those with real money — will leave. Then who’s paying for everything, exactly?

We should worry about all the things you mention - and search for solutions - AS WELL as raising IHT. Obviously raising IHT is not the only thing we need to do.

I genuinely wish someone would think of this other way …

We should worry about all the things you mention - and search for solutions - AS WELL as raising IHT. Obviously raising IHT is not the only thing we need to do.

No, I have not described PETs in the way you suggest.

I don’t describe them at all in my posts.

Perhaps you have confused me with another poster ?

You have not explained why the admin costs would be higher than existing rules on gifts. That may be your opinion, however that doesn’t make it fact.

Only it’s not mostly wealthy families. It’s middle class families down south who have all their wealth tied up in their property and without receiving this as an inheritance their dc have no hope of getting housing

it’s all very well for people living somewhere where £400k buys you a massive family home. You must think anyone with £2mil estate is loaded. In and around London it really means nothing of the sort.

Are we supposed to feel sorry for your daughters because they will only inherit about £1 million each? That is a massive amount of inheritance.

A lot of wealth is due to house price inflation, particularly in London and the South East, not due to hard work.

By spending it rather than hoarding it you will be helping to stimulate the economy - which is a positive.

Then what’s the point of owning anything at all?
Honestly, don’t you think your existence is already enough of a burden on the state’s balance sheet?
Every time these threads pop up, the underlying message is the same: success or financial prudence should be punished, not rewarded.
Want redistribution? Fine. But do it fairly. Don’t punish people for doing the right thing.
Oh, here we go again. Another “tax the dead” thinkpiece from someone who clearly assumes that anyone inheriting a house must be clinking glasses of Dom Pérignon while wiping their tears with hundred-pound notes.
In my opinion, inheritance tax should be abolished—50%?! HALF?! That’s not taxation; that’s legalized looting under a Labour badge.
And before anyone pipes up with, “It’s only the rich” — have you seen house prices in the South East? Ordinary families are getting stung just for inheriting a bog-standard semi in Croydon. We’re not talking landed estates and private jets here. Some of us just had parents who bought a house in 1973 for 12p and a packet of crisps.
As for this fantasy that it’ll “encourage earlier wealth transfers” — what, are we meant to hand out our life savings at 40 and just hope we don’t need a care home later? Try funding decent elder care when your so-called “wealth” has been hoovered up by the council.
And yes, I’d love to see them “exempt small businesses” — but we all know how that ends. Mega-corps will wriggle through custom-made loopholes while Bob from Barnsley gets hammered for trying to pass on his plumbing business to his lad.
Want to reduce inequality? Fab. Go after corporate tax dodging and offshore trickery. But punishing families who’ve scraped, saved, and behaved responsibly isn’t progressive — it’s lazy, short-sighted policy wrapped in class envy.
Anyway, must dash. Off to tell my mum that apparently the best thing she can do for Britain is die and donate her house to HMRC.
A few actual points, if anyone’s still reading:
Disincentivises Hard Work and Saving
Many families work for generations to build up modest assets — not out of privilege, but sheer effort. Hiking inheritance tax sends a clear signal: don’t bother being responsible, we’ll take it off you anyway.
Encourages Tax Avoidance
Jack up the rate, and the ultra-wealthy will just slide even more into trusts, offshore accounts, and “creative” structures. The rich will dodge it, the middle will foot the bill.
Hits More Than Just the Rich
With property inflation, that £325k threshold is laughably outdated. A bog-standard family home in many areas now crosses it, dragging in people who never saw themselves as “wealthy.”
Undermines Intergenerational Support
Older generations often save to help their kids — with uni fees, house deposits, even childcare. Strip that away and you’re weakening the very social fabric that keeps many families afloat.
Risk of Capital Flight
Push too far, and people — especially those with real money — will leave. Then who’s paying for everything, exactly?

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.

It’s not taking money off working people it’s taking off people who are dead and no longer need it

and in most cases it’s taking money from dead people who never paid any tax on it because it’s money from the house that they bought for tens of thousands less than it’s now worth

rather that than they raise stealthy taxes everywhere else that affect the living

Not true at all. My joint estate with my husband is worth about £4 million and will be subject to inheritance tax. Apart from a gift of £25,000 from my father to buy my first home, the entirety of that is the product of extremely hard work. Now that my DH’s pension pot will be taxed twice thanks to the changes in March, our two daughters will only get about £1 million each. And you want to take more of that? What was the point of us working so hard all those years?

And there are hundreds of thousands of other hard working families who have inherited little, if anything, in exactly the same position as us. Work pays, if you choose your industry well.