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.

I really don't car becaus Nigel Farage has said he will reverse all of Labours jealousy taxes once he is PM.

This doesn’t answer the question - having said which I agree Labour should be careful about how they splurge the money raised.

👏👏

Children includes adult children. So the same rules apply.

The government website explains it here: https://www.gov.uk/inheritance-tax

But how will he raise money to pay for public services?

London - those entitled bastards. How dare they complain about cost of living. Who needs people to be working in London anyway? Who needs London?

You obviously know nothing or very little about inheritance tax OP.

We can't.

We are massively over extended.

The population growth of the last 25 years has trashed the economy.

They should of course go after criminal gangs and money launderers. Raising IHT doesn’t stop them doing that.

So we need to find ways to raise more money eg raising IHT.

Very helpful contribution, thank you.

Do you think the people who would pay inheritance tax out of the estate are not working? Blow me. News flash. They are usually income tax paying workers.

1.Main points
Borrowing - the difference between total public sector spending and income - was £20.7 billion in June 2025; this was £6.6 billion more than in June 2024 and the second-highest June borrowing since monthly records began in 1993, after that of June 2020.

The interest payable on central government debt was £16.4 billion in June 2025, largely because the interest payable on index-linked gilts rises and falls with the Retail Prices Index; this was £8.4 billion more than in June 2024 and the second-highest June central government interest payable since monthly records began in 1997, after that of June 2022.

Borrowing in the financial year to June 2025 was £57.8 billion; this was £7.5 billion more than in the same three-month period of 2024 and the third-highest April to June borrowing since monthly records began, after those of 2020 and 2021.

The current budget deficit - borrowing to fund day-to-day public sector activities - was £16.3

They are not working for the money they inherit.

It’s not that nobody needs London, it’s that people who live in London know the cost of living in London, and can leave if they don’t like it.

If I didn’t want to pay Cheshire tax, as we call it, I could move back to Teesside and not pay it. Living here means our house is worth more, there are probable financial implications attached to that, and I know that.

https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/june2025#borrowing-in-june-2025

If they did this, then what motivation would there be to work for decades in a stressful job building up a nice life for your family, just for some socialist government to cream half of it off upon your death to give to someone else? May as well just have some mediocre job without all the stress and spend whatever you have before you die. That’s what I would do anyway.

??? Why the hell would you have to work for inheritance?? Jezza C would approve of your success penalising idealogy.

ATM we are spending £54k per year to keep each foreign offenders in our prisons. This year £600 million. They need to be deported. Get out of ECHR and instead create a UK Bill of Rights to replace most rights but not the one agreeing to accept foreign migrants who are passing through many safe countries before coming to UK. Make a law to stop paying any benefits to non UK citizens until they have contributed to our economy for 8-10 years. Stop paying child benefit to DC not even living in the UK. Stop handing out discount cards for crazy golf and swimming to immigrants who are no longer being assessed and have been given leave to stay. No immigrant hotels will be needed because immigrants won't be allowed to come illegally and cap the number of legal immigrants to those we really need. The first time they commit a crime report them. You have no idea how much money is given away to immigrants. Bankrupt Birmingham Labour council gives immigrants cards so they get cheap swimming and crazy golf and other perks yet they can't even empty peoples bins. So much money is wasted on translation into so many languages. If you live in the UK you should learn to speak English. Yesterday I read an article saying councils were paying for DC to learn Somali, Bangladeshi and a few other languages. It's madness. If their parents wanted them to speak their mother tongue let them teach them themselves not expect tax payer to do so.

This basically boils down to “don’t give money/help to immigrants.” Is that the only revenue raising idea Reform has got?

Yes and stop paying pension credits and benefits to people from overseas who sometimes stay with their dc here but then go back to their own country

It is simplistic to suggest that increasing any tax will increase revenue collected.

Once a tax rate becomes too onerous people take steps to avoid it. The government has estimated the amount they’ll get from adding pensions to IHT without understanding how people will react.

From April 2027 people will be looking to pass over much more, much earlier to their DC. They won’t sit on a huge pension fund and just all 40% IHT + recipient income tax to erode 2/3rds of it.

The sad part of IHT and one that is going to get worse is that it is a tax on sudden death. Live to old age and it’s easy to pass everything to DC as your needs get less as you age. Die young without a spouse and your DC lose fortunes that you planned to give them later in life.

@Womblingmerrily Trusts don't save tax now. They just restrict where the money can go if there is a question regarding whether or not a DC will just piss money away or if they marry someone who could take them for a ride. The good news is that pre ups help more regarding that second scenario (we have one as whilst we have made a lot of money together I came in the marriage with a lot more than my DH).

Inheritance tax is awful. My DF worked his arse off and pays more as a pensioner in PAYE tax than probably 90% of people on this site (and that is genuinely no exaggeration). In order to do that he ran companies worth many 100's of millions of £, employed many thousands of people and was responsible for ensuring they themselves had a good retirement when they were done.

As children, my DSib's and I found DF travelled all the time. When he was home, my DM and him worked through problems at 2am in the morning when he couldn't sleep. Work/life balance and duvet days whilst pondering his navel? For. The. Birds.

Yes, you know what? That means my DSib's and I are in for a lot of cash when they die. But so is the Chancellor. And she doesn't care. She doesn't understand that it's business that actually creates the wealth and that without people willing to take the extra mile there will be no finance for those pet projects she loves. And that actually those people have to have an incentive to make that effort. Socialism doesn't work. Why should you put yourself out if the person who can't be arsed gets what you get whilst doing F-all.

I am already planning for my children to escape this god awful tax. I do all the finances in our family and their ISA's are maxed and their pensions too. I will make sure they have property in good time (but again with legal restrictions in case of divorce etc). Rachel Reeves and this socialist bunch can truly get to fuck.

It's okay OP.

Rachel Reeves fixed the foundations.
She found a 20 billion black hole and raised taxes one time only to fix the mess Labour inherited.
Those with the broadest shoulders.
Fixed the foundations.
It all fine.

This basically boils down to “don’t give money/help to immigrants.” Is that the only revenue raising idea Reform has got?

You have this the wrong way round.

Reducing spending is the opposite of revenue raising.

You need to raise less if you spend less.

We already spend far more than we raise and we're increasing debt to pay interest on debt so it's all very shaky.

30 years of rapid population expansion has been a disaster.