Saturday, October 13, 2007
Maybe it's because I have no real financial assets, but I really don't have a problem with inheritance tax. In fact, the only way I'm ever going to have any assets is by inheriting stuff, probably from my parents. They paid a small number of thousands for the house they are in, and it is now worth many times more than that. Inheritance tax won't be a 'double tax', but a tax on all that inflationary growth. Oddly found my self agreeing with Michael Portillo and Diane Abbot that to raise the threshold for this tax effectively entrenches social division based on socio-economic standing. The system needs tweaks (such as the sisters who want to be able to leave their half of the house to the other, as married / civil partners can) and I wonder whether there should be a banded rate system. However, I genuinely wonder whether the threshold shouldn't stay lower.