“IFS: scrapping inheritance tax hands £1mn to richest 1%”

Sep 30, 2023 | Tax

To say that Inheritance Tax is all in the mind would be an exaggeration, but it is true to say that most who worry about it have no need to. Only 10% of estates (ie people who’ve died) actually pay it, and around 2% actually pay around half of the £7bn it currently rakes in. So while abolishing it might be a vote winner, in reality most of the benefits will go to the families of the wealthiest. And of course, it will be replaced by something else, probably a gift tax of some kind, whereby, as in many other countries, the recipients rather than the donors are taxed; which will probably turn out to be a much-bigger money-spinner for Messrs HMRC. Smoke and mirrors, and all that.

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