Scrap IHT for new capital receipts tax: think tank

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...