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Anorak | The LibDems have a bloody good idea: the accessions tax

The LibDems have a bloody good idea: the accessions tax

by | 30th, August 2012

WHO knew that they had it in them? The Lib Dems that is, being capable of offering up a good idea?

Replace inheritance tax with an “accessions tax” on beneficiaries of estates. A section on wealth taxes in a party consultation paper talks of “an accessions tax, where the tax liability would fall on the person receiving the income rather than the estate of the deceased. This would simplify the settling of the estate, making inheritance income more like employment and investment income.”

This isn’t a new idea of course, it’s been around for yonks. And economists have been saying what a good idea it is for yonks too. Quite apart from anything else, it encourages people to leave lots of smaller bequests rather than just one or two large ones: thus spreading the wealth around which is generally considered to be a good thing.

But really, any political party at all having a good idea about tax is unusual so9 worth celebrating it when it happens.

 



Posted: 30th, August 2012 | In: Money Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink