Scrap IHT for new capital receipts tax: think tank

clock •

Inheritance Tax (IHT) is unpopular and ineffective and should be replaced with a new capital receipts tax, the Institute for Public Policy Research (IPPR) says.

Currently, IHT applies to the value of the estates of deceased individuals above £325,000, at a rate of 40%. However, this rate is rarely 40% in real terms, the IPPR argues, as the tax rate is only on the value of the estate above the threshold. So where an estate of £1m is concerned, the IHT would be £270,000, which the IPPR argues is effectively a rate of 27% rather than 40%. Instead of IHT, there should be a new capital receipts tax on cash and non-cash gifts to individuals of over £150,000. The IPPR claims this would prevent tax avoidance amongst the super rich, reduce wealth i...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers urged to rethink role of traditional diversification

Advisers urged to rethink role of traditional diversification

Milliman publishes whitepaper

Sophia Panayi
clock 29 September 2026 • 2 min read

Active ETFs, ESG and the retirement advice challenge

Sarasin & Partners portfolio manager Ben Gilbert joins PA in the studio

Isabel Baxter
clock 05 June 2026 • 1 min read
Tyndall Partnerships head Sullivan on bespoke empowerment

Tyndall Partnerships head Sullivan on bespoke empowerment

‘No two IFAs invest in the same suite of models’

Isabel Baxter
clock 09 December 2024 • 4 min read