Anorak | The Real Problem With Inheritance Tax Is That The Rich Don’t Pay It

The Real Problem With Inheritance Tax Is That The Rich Don’t Pay It

by | 30th, June 2014



THERE’S another report out detailing what’s wrong with the current system of inheritance tax in the UK. And this report gets right to the heart of what’s actually wrong with this current system. Which is that the rich bastards don’t actually pay it while anyone who owns a house in London does. It’s not actually a tax upon the rich: it’s a tax upon the middle class :

 People with estates worth many millions are able to avoid the brunt of inheritance tax through complex schemes, including moving the cash offshore or investing in agricultural land and small business shares. Those avenues are closed to “moderately well–off” people whose only assets are their home and pension, Mr Johnson said.

Oh yes, everyone thinks that if you have a lot of dosh when you pop your clogs then the State gets 40% of it5. But that’s not actually how it works. Farmland for example: no inheritance tax upon that. So multi-millionaires make sure they buy a large farm or two which the kiddies then get tax free: and, of course, sell after a year or two and make off with their bundle. Small company shares also do not pay inheritance tax. So owning a company worth a few millions pays no tax. There’s endless other ones like this. If you’re rich enough to hand over the estate 7 years before

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Posted: 30th, June 2014 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink