Scrapping inheritance tax is 'far from being an electoral slam dunk'
As millionaire Tory MPs pressure the Prime Minster to remove inheritance tax, a new survey has revealed the majority of the public are not in favour of scrapping the tax which favours the rich.
Three-quarters of people across the political spectrum supported the taxing of inheritance, research from the think-tank Demo found. And the majority of people would also like to see the threshold for paying tax on inheritance lowered, not increased, from what it is now.
Leading the calls to end inheritance tax is millionaire Nadhim Zahawi, who was sacked by Sunak over his own tax dealings. Zahawi referred to the tax, which affects only the richest 4% of families, as ‘morally wrong’.
A group of more than 50 Tory MPs including Liz Truss, Jacob-Rees Mogg and Priti Patel are among the right-wing lobbyers demanding Jeremy Hunt scrap the tax in his Autumn statement later this year.
The Tory backbenchers argue that inheritance tax is unpopular, however research by Demos has revealed that this analysis is simply misleading.
Having some form of tax on inheritance was backed by 75% of people, with the median response putting the threshold at £300,000 – just below the current inheritance tax threshold of £325,000.
For inheritance of a secondary home that has doubled in value since purchase, eight in ten people think it should be taxed in some instances, and half think it should be in most instances.
Although 55% of people said initially that inheritance should be generally tax-free, the survey found that support increased dramatically when people were asked about specific amounts.
“Far from being an electoral slam dunk, cutting or even abolishing inheritance tax is based on assumptions that do not stand up to scrutiny,” Demo announced.
“Certain ways of framing inheritances – even if there are no substantive differences in the inheritance at all – can generate more public support for taxes.
“Equally, public attitudes are associated & perhaps rely on a system of values and beliefs which are open to challenge.”
Each year in the UK over £100 billion is passed on in inheritances and gifts, with the value passed on in inheritance in England set to double by 2040.
Currently inheritance tax is levied at 40% on the value of someone’s estate above a £325,000 threshold.
The tax raises more than £7 billion a year to help fund public services like the NHS and schools.
To reach hundreds of thousands of new readers and to make the biggest impact we can in the next general election, we need to grow our donor base substantially.
That's why in 2024, we are seeking to generate 150 additional regular donors to support Left Foot Forward's work.
We still need another 124 people to donate to hit the target. You can help. Donate today.