In this episode, Michael Taylor and William Clouston discuss the Conservative Party’s proposals to abolish inheritance tax.
Inheritance tax is paid at 40% on assets over £325,000. The tax-free threshold is inherited by a surviving spouse and rises to £500,000 if the beneficiary is a child or grandchild, meaning that no tax is paid on the first £1m inherited by direct descendants of a married couple.
Over £7 billion per year is raised through inheritance tax, which is spent on public services.
The Conservative Party are said to be considering abolishing inheritance tax entirely as part of their next general election manifesto. Is it reasonable for parents to expect to build up wealth and pass it on tax-free, or would this simply entrench existing inequalities?
William and Michael explore the practical and ethical problems with this proposal.