Should Inheritance Tax be abolished?

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Currently, inheritance tax is paid on amounts left over £350,000. This tax is payed on income that has already been taxed when earned.  

In reality, very few people pay inheritance tax (IHT) and it raises relatively little money for the Treasury. But thanks to the controversy around gifts to David Cameron from his mother, IHT is now under the political spotlight.

It is seen as unfair because it does not catch the truly wealthy, who are able to disperse the assets in plenty of time before they die. Instead it falls upon those who have used their already taxed income to build up modest assets over the course of their lifetime, normally in the form of their home but also their ISAs and savings for retirement.

It only raises 0.7% of the total amount of tax raised in the UK.

If you pass on property, or anything else of monetary value, to your descendants, you will pay IHT, but only if the total value exceeds £325,000 in 2016/17. Anything above that amount will incur tax at 40%.

People who are rich can give money to their children and so long as they live for another 7 years this is then not subject to inheritance tax.

What’s your view? Should the UK government abolish inheritance tax? Is it fair that earnings that have already been taxed, are taxed again?  

Should Inheritance Tax be abolished?

317 people have already voted, what's your opinion? Yes No

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major red
19th Aug 2016
0
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yes as the person who died leaves the money they have already paid tax on it
iestynlad
13th May 2016
1
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As a former Chartered Tax Adviser the rules to compute the IHT are VERY complex and fees are spent on paying advisers to calculate - sometimes to end up with small amounts of tax due (owing to applicable reliefs) are high at a time when people are dealing with bereavement and probably re-organising their finances. Also with the right advice wealthier individuals can avoid much IHT, whereas the less wealthy in terms of disposable income but maybe with a high value estate get clobbered.
Lionel
28th Apr 2016
1
Thanks for voting!
Whilst I would not disagree with people's opinions I'm not in that place. We bought an ex-Council house in the wilds, away from anyone, with an enormous garden. It was, in comparison, cheap.

Cheap it might have been but it is home, to us, our children and grand children, not to mention three dogs.

We will not fall into inheritance tax troubles, the house is all there is. But, the family have had a lot of good times here, and the dogs their entire lives. Others have come and gone.

That's what matters to us, the life we lived with them all. Not the tax after this life.
Grumpy one
28th Apr 2016
3
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In my opinion the threshold for IHT is now too low mainly because of the vast rise in the value of houses.The threshold should rise in proportion.
AnnHar1
24th Jun 2016
0
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I have just been discussing this with my daughter and we both believe that, with property prices being so high the level should be set at £1,000,000 rather than £350,000 as it is now!! We won't be leaving anywhere near that amount but never the less £350,000 is too low!! Hammer the rich guys but not those who bought their homes wisely
Robert2706
28th Apr 2016
2
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The government have learnt a lot of lessons from the EU, take whatever you can when you want. Don't worry about the people just line the coffers to pay for your next MP rise.
KeithE3
28th Apr 2016
2
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As others have said- it's a tax on what's already been taxed probably more than just once- Salary is taxed, some of that goes into savings, that's taxed, then on death there's the Inheritance tax on top.
Samwise
27th Apr 2016
2
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My parents paid the appropriate amount of tax on all that they earned, and my wife and I have done the same. Why therefore should their be tax paid again on that money or items that were purchased with that money - it has already been taxed once??? If there has to be some tax then the threshold for paying this should be much, much higher than it is currently.
2
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I have paid tax all my life and that should be enough.
Wilf
4th Jun 2016
0
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I agree with this. Why should we pay taxes on taxed income?
Carol Anne Higgins
21st Apr 2016
2
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It's always been a totally unfair tax and it is time it was abolished. As has been mentioned already why should tax be paid twice on the same money?
Jo Kingham
20th Apr 2016
-1
Thanks for voting!
Its an outrage that your children have to pay tax on their inheritance. As you quite rightly say we've already paid tax on the earnings so why should it be taxable again? You work hard all your life and if you haven't had the time or be fortunate enough to spend it all, your kids should be able to enjoy it when you've gone.
mickigirl
20th Apr 2016
1
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In my mind Inheritance Tax has always been an abomination. It's very unfair.
Wilf
4th Jun 2016
0
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I agree its the worse tax out there
Wilf
19th Apr 2016
1
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Its stupid why should we be taxed again for inheritance. I don't have enough for the threshold but its the "unfairness" of taxing and then taxing again...
Slackonovski
19th Apr 2016
1
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Tax on the taxed in death
Soozie63
17th Apr 2016
6
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We pay tax all our lives and what we leave for our children should not be further taxed.
Wilf
19th Apr 2016
1
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Totally agreed Soozie63 !
Ana
18th Apr 2016
1
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I definitely agree with you Snoozie63 . Well said !!
wallis
16th Apr 2016
8
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We've already paid tax on everything we have & want to leave something for our children! If you pay 40% income tax + 20%VAT and another 40% when you die!! THAT is 100% TAX TAX TAX ☹️☹️☹️
JohnHerb
15th Apr 2016
7
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I think inheritance tax is outrageous! Why should I pay income tax say 40% so I am left with 60p in the pound. I then go and buy stuff and pay 20% vat. So I am actually paying 40p of my own money. When I die I then get another 40% on money that has already been taxed? How can that be fair? I am a normal Brit --not rich but just middle income. People like me PAYE taxpayers get totally hammered by the government on tax as there is no way out. Do I begrudge this? Not really as we live in a great country...but we must all be in the same situation.. Inheritance tax is simply unfair
Wilf
19th Apr 2016
1
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Yes i agree it is not fair
Greenacres
15th Apr 2016
2
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Hi, just would like to say I feel exactly the same, you put it the way I feel, so thank you for expressing it so eloquently, but it will go on deaf ears as we are just small fish in a very large pool. Inheritance tax is as you say 'simply not fair'.
celtwitch
15th Apr 2016
2
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My mother very kindly took away any inheritance tax worries I may have had by...not leaving me a penny! She left everything to my brother.
jeanmark
16th Apr 2016
1
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My mother took away any inheritance tax worries we may have had by becoming so frail she had to be admitted to a nursing home and her house sold to pay for her care..........
Greenacres
15th Apr 2016
3
Thanks for voting!
Personally for me as I live in between Bromley and Sevenoaks Kent it's common to see so many houses displayed in the Estate Agents windows around the million pound mark. I have lived in my house for the past 30 years and I'm not cash rich it's just one of those things.
Alicia
15th Apr 2016
3
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No, rich people should pay it.
Wilf
19th Apr 2016
1
Thanks for voting!
Not even sure they should as they probably pay a lot of tax anyway...well the rich...not superrich
jeanmark
15th Apr 2016
3
Thanks for voting!
Do you own a house valued at more than £350 000? Most of us probably do with the increase in property prices. The fact that I've worked hard, saved hard and bought my own house doesn't make me rich, just fortunate.

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