IFS suggests raising of inheritance tax
by Sarah Ashcroft
As pressure grows on chancellor George Osborne to scrap the 50p tax rate, one expert has proposed alternative means of taxing rich individuals.
Paul Johnson, director of the Institute for Fiscal Studies (IFS), explained that the current tax rate is encouraging people to go in search of tax avoidance schemes.
As a result, he believes an increase in inheritance tax could be a worthy alternative, which may influence people's plans when it comes to making a will
"Wealth inequality has grown very strongly over the past few years, so if you are worried about it, inheritance tax is relatively useful," he told the Daily Telegraph
The IFS pointed out that it is essential for the tax system to be as effective as possible, as the government uses it to take around £4 out of every £10 earned in the economy.
Inheritance tax is currently payable on estates valued at more than £325,000 and stands at a rate of 40 per cent.
- Making a Will News: Get a tailor-made Will for you at a fixed price with Lawpack's Bespoke Service
Published on: September 22, 2011
Did you like this article? Share it!