Peer pushes for inheritance tax changes
Probate & Estate Administration 28 Dec 2011
Changes need to be made to inheritance tax legislation in order to allow wealth to be distributed more evenly, a Labour peer has suggested.
Speaking in the House of Lords, opposition Treasury spokesman Lord Eatwell recommended that this could be achieved by charging inheritance tax to recipients, rather than estates.
He continued: "Everyone is in agreement that inheritance tax at the moment is rather unsatisfactory.
"It is stimulating a large avoidance industry and contains perverse incentives."
Not only will this allow for a better distribution of wealth, but could also help reduce levels of tax avoidance, Lord Eatwell explained.
Commercial secretary to the Treasury Lord Sassoon responded to the call by saying that there are no plans at the present time to change the law surrounding inheritance tax.
In 2011-12, the inheritance tax threshold stands at £325,000, with estates over this figure subject to 40 per cent taxation.
Published by Tessa Jones
