Inheritance tax blasted as ‘legalised theft’ in calls to abolish levy

Inheritance tax (IHT) has been slammed by Express.co.uk readers as “abhorrent and immoral” with greater than 9 in 10 calling for it to be abolished, a new poll has discovered.

IHT is a 40 % levy imposed on the worth of a person’s property and property exceeding £325,000.

Despite simply seven % of estates reaching this threshold, excessive inflation and rates of interest imply extra Britons may very well be affected by the tax sooner or later.

IHT receipts generated a record £7.1billion in 2022-23 however official forecasts printed by HM Revenue & Customs final week confirmed that it may usher in £7.7 billion this monetary 12 months.

This is a hike on the Office for Budget Responsibility predictions in March which didn’t forecast IHT receipts to achieve £7.8bn till 2027-28.

In a ballot that ran from 2pm on Monday, June 26, to 4pm on Friday, June 30, Express.co.uk asked readers: “Should inheritance tax be abolished?”

Overall, 2,053 votes have been acquired with a staggering 93 % of readers (1,914 individuals) answering “yes” it must be abolished. Whereas, six % (125 individuals) stated “no” and an additional one % (14 individuals) stated they didn’t know.

In the feedback left beneath the accompanying article, readers took part in a lively debate on IHT.

The majority of readers argued in favour of IHT being abolished, with username rastler describing it as “legalised theft”.

Another, username mriancox, wrote: “This tax is absolutely disgraceful, many people have been pulled into the net because of house prices and the fact that the ceiling rate has never been raised for years. Abolish it now!”

While username Worldwatcher took a extra stability view, commenting: “Inheritance tax is an abhorrent and immoral tax on the dead, people that paid off their mortgages, saved for their retirement and invested wisely during their working lives – all from pre-taxed income! It must be banned.

“However, the Treasury does earn annually £7 billion in inheritance tax receipts which they spend on the general public and national services. Consequently, there will have to be a minor tax increase on every working/employed citizen to replace that lost income.”

The IHT threshold has remained unchanged since 2010-11 and final November Chancellor Jeremy Hunt extended the freeze for a further two years until 2027-28.

A minority of readers thought that IHT ought to stay, with username Queenb saying: “Passing wealth to your kids that they’ve done nothing for is a privilege and absolutely should be taxed.”

Username Naffoff stated: “Inheritance tax is the worst kind of UK tax to be imposed on the hard-working UK people. However, some sort of tax should be imposed on those people who are of millionaire status and above, but not a hard tax.”

Tax and monetary planning professional at Quilter, Rachael Griffin, defined: “While IHT is not the government’s most lucrative tax, it has increased significantly in recent years as frozen thresholds and higher house prices led to more people being caught by in its net. 

“Abolishing it altogether would punch a hole in the budget, compounding an already bleak economic outlook.”