Quote:
Originally Posted by Sephiroth
Not a red herring at all. If the government instead lowers income tax or VAT or some other direct taxation, and you accumulate more wealth as a result, IHT takes that back at the 40% tax rate subject to the allowances.
IHT should be scrapped and the government should fund its business through direct taxation such as inccome tax, VAT, duties.
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Yes, just like it dictates how much you earn, and the cut it takes when you spend (or gift to your children when alive).
There’s definitely an argument for better taxation, closing the tax gap, taxation of non-PAYE taxpayers and ending many loopholes. I’m at the front of the queue.
However in the absence of comprehensive reform I fail to see the value in one off tax exemptions for the children of the rich. We need to give it more teeth for those that avoid it.