Published On: Mon, May 17th, 2021

Inheritance Tax: Rishi Sunak should axe IHT payments for Britons – poll results | Personal Finance | Finance

Inheritance tax is a levy chargeable on the value of an estate above a particular threshold of an individual who has passed away. At present, it is set at 40 percent and must be paid promptly by individuals who are left behind after their loved one’s death. Understandably, the levy has garnered some amount of controversy within recent years, as some have pushed back at the idea of being taxed on death.

A report from the Organisation for Economic Cooperation and Development (OECD) suggested Inheritance Tax should become a large part of tax revenue post-pandemic.

It made the suggestion for all of its member countries as a way of potentially providing further support to struggling economies.

The OECD warned that within the next decade wealth inequality is likely to increase if death duties are not raised.

Some readers expressed their varying opinions on IHT and its place within the UK. 

One person wrote: “Why do these people always hate the elderly and see them as easy money when they know they too will be old before they know it.

“After decades of promising downwards reform of IHT they now think of reforming it upwards.

“Is it any wonder that smart elderlies are leaving for a place in the sun which don’t charge IHT?”

However, another individual stated the tax did not need scrapping at all, and instead said an alternative approach should be considered.

They said: “No need to increase it, just abolish the loopholes that the very wealthy use to avoid paying it.

“With loopholes closed, the tax could then be reduced from 40 percent.”

In his recent Budget, Chancellor Rishi Sunak made a significant decision on Inheritance Tax in what many viewed as an effort to claw back pandemic spending.

Mr Sunak announced the threshold for Inheritance Tax would be frozen at its current rate between 2022 and 2026.

This could mean any increases to inheritance may end up falling into the tax trap over time.

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