I spent some time discussing Inheritance Tax here last week.
Now there's the resounding evidence that most people neither care about it, or think it has any relevance to their lives. 90% of all adults in the UK do not have a will.
If you were the remotest bit worried about Inheritance Tax you would. So they're not. The evidence is clear.
The Tories have got this wrong. And people realise this is only a tax on a small minority in society. The only one's that John Redwood thinks matter.
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I am afraid that you are wrong, Richard. As a pensioner with a 41 year old daughter who is seriously physically disabled, IHT is a big issue for us.
The panacea would be that the socialist State known as England could be trusted to care for her physically and financially in the future. That, however, is a pipe dream.
John
I sympathise with your situation.
But your comment about the ‘socialist state known as England’ is so far removed from reality that your comment lacks credibility.
I am well aware that our system is far from perfect, but it is also far from being socialist.
And your panacea can, of course, only be achieved in one way, which is the payment of more tax. If IHT is to go to benefit the best off in society who should pay the additional sums that you would wish the government to have at its command?
Richard
I thought that I was being quite restrained, Richard, in using the term ‘socialist state’. Professor Karol Sikora, the eminent cancer specialist, is quoted in the national press this week as stating that the National Health Service is the last bastion of communism in Europe.
John
I know quite a lot about the NHS. I am married to a GP.
Might I suggest the eminent Professor seek medical advice? He has clearly lost touch with reality.
I suspect it’s a case of too much private practice.
Such comments are the last resort of those without argument – rather as was seen to be the case on Hecklers this week.
Richard
What a peculiarly unrewarding pair of comments from John Newth! Including a new definition of socialism and communism, it seems.
The only chance the Tories have of being elected is if they do what they said they were going to do in the front page headline of the Daily Telegraph on 23rd December 2005. “Letwin: we will redistribute wealth” and “empower people”. And the only way they can do that is by reforming taxes on inheritance instead of abolishing them.
What we need is Popular Democratic Capitalism with privately owned capital for all as well as votes for all. Universal Inheritance as well as Universal Suffrage. Cameron must use steps towards the former on his terms to gain power in the 21st Century just as Disraeli used steps towards the latter on his terms to gain power in the 19th Century.
I sent the following to Any Answers in Liverpool today but no reaction, alas!
“Subject: Inequality of Wealth is divisive and The Liberal Party in Liverpool has a policy to reduce it and give every young British-born UK resident £10,000 at 25
INEQUALITY OF WEALTH IS DIVISIVE AND OUGHT TO BE REDUCED. Every child deserves an inheritance. The Liberal Party http://www.liberal.org.uk – very active in Liverpool – (not the EU-fanatic Lib Dems) has a policy to achieve this – British Universal Inheritance.
Taxes on inheritance should be reformed, not abolished, in order to tax the luxury expenditure of giving and bequeathing capital so that every young adult can receive a minimum inheritance of £10,000 at the age of 25. Introduce a negative (£10,000) and progressive (starting at 10 per cent) Lifetime Capital Gifts and Inheritance Receipts Tax and reduce the vast inequality of inherited wealth that beneficiaries have done nothing themselves to create, earn, save or make.”
In effect this would be a net benefit to all UK citizens at 25 on a sliding scale from £9,000 for those who otherwise inherit nothing from other donors down to zero when they have received £90,000 from other donors. Of course the parameters can vary, with higher progressive rates covering collection costs, the present £3 billion tax take or increasing the £10,000, tapering down to age 30, eligibilityfor older citizens who have never inherited – or any permutation of all these.
More details in my earlier comments re dropping the rate of the so-called ‘Inheritance’ Taxi on the luxury expenditure of giving and bequeathing from 40% with exemptions to 10% without exemptions, with transferable credits between the two taxes so that any 10% tax due from recipients not subject to the higher rates has already been paid by the flat rate 10% tax on donors.
If the Conservative Party goes ahead with abolition of inheritance taxes instead of reform along these lines – and replaces taxes on inheritance bya Capital Gains Tax that excudes their expensive houses and long held assets they will, I hope and believe, be just an historical curiosity and will never, ever, be elected again. Which would be a pity, given the need for a multi-issue EU sceptic party.
DANE CLOUSTON
Director, OPPORTUNITY – The Campaign for British
Universal Inheritance
http://www.universal-inheritance.org
I would argue that if a young adult knows they’re going to inherit £10,000 at 25, they might not be inclined to work and to save.
Why does every child deserve an inheritance? Would it not be healthier to say that everyone who can work and save, should do so? And would having an inheritance not put them off working?
When my grandfather died some 15 years ago, he left all his not inconsiderable estate to my brother and sister – nothing to me. Having no capital behind me has incentivised me to work hard and earn a qualification so that I will always be able to earn enough to support myself and to save.
In my view the principle of universal inheritance is flawed.
M
M
I do agree with you
I admit I see ittle virtue in inheritance. So far I’ve managed happily without – bar £1,000 from a great aunt which did, I admit help pay for my first car.
Nor am I jealous. If I never receive another I really won’t mind.
Richard
Richard,
Justice? You have allowed and agreed with a posting declaring that universal inheritance is flawed and have refused to post my concise answers to the flawed arguments therein.
Tax Justice? In relation to ‘Inheritance’ Tax you have thereby declared yourself a defender of the status quo – vast and increasing inequality of wealth – rather than a supporter of tax justice – in the form of a judicious redistribution of gifted and inherited capital in each succeeding generation.
So be it. The establishment, including the BBC, will no doubt be pleased. Please remove me from your circulation.
Dane Clouston