The Conservative Tax Reform Commission set up by shadow chancellor George Osbourne has published its recommendations proposing a total of £21bn in tax cuts through the abolition of Inheritance tax and the 10% rate of income tax.
The commission has also put forward proposals that would see the basic rate of taxation cut from 22% to 20% and stamp duty on shares abolished. Calling IHT a “deferred wealth tax” the report claims that while IHT accounts for only £3.3bn a year of government revenue presently the tax take could actually increase to £5.6bn by 2020 - an increase of 249% on the £1.6bn collected in IHT receipts in 1997. The report calls for IHT to be replaced with a capital gains tax on death ensuring short term gains would be taxed but long held assets such as property could be passed to estate beneficiarie...
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