Labour should increase inheritance tax to 50 per cent

[Tummyachey]

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.

Personally I think it should be reduced to 15 to 25%. At those rates very few would bother to try and avoid it, so would probably bring in more and be fairer (current system means that a lot of tax planning is only available to the uber wealthy who can afford to give lots away, invest in businesses, move abroad etc)

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

Which ones of those are left, pray tell?

Over the last 15 years the tax environment has shifted massively. Its much much harder (nigh on impossible) for companies to reduce the tax they pay through payments to tax havens, obscure royalties, or massive interest deductions (these things used to be quite easy, really). Plus there's now an OECD minimum tax rate of 15% so even if a corporate has managed to bring down their tax, income will get picked up and taxed to 15% anyway.

said the person with fuck all to hand to anyone. Its VERY easy to spend others dosh! freaky friday indeed.
We must have something to motivate us. I want to make my kids life a bit easier than mine, I have worked my but off to pass on some wealth so leave it alone please. 😳

I think parents often help their kids financially even if they are adults. Financial help from an aunt/uncle isn't common/expected. I don't think they are comparable situations and I do think it's fair that the residence nil rate band applies when leaving a house to your children but not to nieces/nephews/others.

Why? My in laws have saved their whole Iives to give my husband a good life. They’ve paid tax on all of it already - income, stamp duty, VAT. Why should it be taxed again?

The super rich are all protected anyway through trusts and charities et al. Only the middle trying to get up a bit more will be punished and dropped back down again.

We want social mobility not social stagnation.

@activecurtains it's not a 50% split between your dc and the gov. Currently IHT is 40% of sums above £325k for single people or £650k when the surviving spouse dies. Although DM had remarried later in life it was decided prior to either of them dying that their estates were separate entities so her estate was taxed as a single person.

Is that you Rachel? It’s Friday dear, go have a lie down x

I don’t want any of my wealth redistributed. I’d rather give it away to charity. I work for my family, no one else. I pay enough tax as it is

Taxing billionaires would help.
As would reversing the cynical national insurance cuts the tories made in their last year in power.
Its rare to find anyone who resents paying NI.
Up NI to 20% and tax the billionaires.
You're welcome, Rachel.

It really wouldn't.

Billionaires have yachts and private jets and houses in different countries.

That's what thousands of millions (which is what a billionaire is) gets you.

It's a staggering amount of wealth and people with it can pretty much pay as much tax as they want. They pay as much as they want now, and they would pay as much as they wanted if you tried to tax them more.

People in say the 1 million to 10 million wealth bracket. That is where you can get some money.

I guess ending them being able to "pay how much tax they want" would be a good idea...

My father worked hard all his life. Ran his own successful business. He paid tax on nearly half of his earnings over the years. He paid tax when he sold his business. He paid tax on the interest he made on his savings. And when he finally goes, all his hard work will be taxed again. I think it works out something like he’ll have paid 90p tax out of every pound he earned.

Not everyone falls into IHT bands because they’ve bought a big house 50 years ago. And no, he can’t take it with him, but he’s already paid more than his fair share to a multitude of inept governments, why should his estate have to pay them even more?

The fact that it doesn’t affect you doesn’t make it fair.

Me too. I worked really hard at school, at uni, at work. Currently doing 12 hour days in my job. I went through some horrific times as a lone parent but it never occurred to me that I would/could stop working. I pay huge amounts of tax already without taking anything back.

Lots of wealth in homes which have hugely gone up in value, goes on care home fees. Taking it in tax would mean gov (us) paying more care home fees.
I’ve posted this before and it seems to stop the ‘they’ should pay comments -we all should pay, a small increase in income tax, a small decrease in benefits, a small increase on inheritance etc etc etc

Nice one OP.

What’s your next pearl of wisdom. Starmer is a good Prime Minister. Reeves is the best Chancellor we’ve ever had?

If they want to raise billions then they should get people off the welfare state!
we are sick note Britain and I am fed up of paying for people to are effectively too lazy to bother with work.

Unhinged.
I don't think there should be any inheritance tax at all.
I don't want my family's wealth redistributed, thanks. I want everything to my children, not the State.

Possibly abolish IHT but make property liable for CGT as they do in other countries.

I think you have to be careful - if you punish those who’ve done well / are doing well, they can take actions such as leaving the UK or gifting money well before they die. Plus you disincentivise hard work and saving. Most people I know are working not only to get money for themselves, but to try to help their children in the future.

People do change their behaviour based on tax regimes.

I take it you are not set to inherit! Putting up taxes simply means that people will work harder to avoid said tax.

That’s a real shame and very unfair . Sorry too for your loss

Anxiety can be debilitating, people off sick with it need help before being of any use in the workplace.

If they did this it would raise billions of pounds - while avoiding raising taxes on working people.

You do realise that this would mainly affect working people?

Can be are the operative words. How many of those on benefits for it are really too anxious to work at all. Wfh is all the rage now they don't even need to leave the house.

I will be the only beneficiary of my parent’s estate and I agree that they should do this.

The amount you receive tax free is quite a lot.

Greed is a very unpleasant trait.