According to the UK think tank the Centre for Policy Studies (CPS), families in Britain are being unfairly penalised by the current tax system and has called for reform.
The CPS is urging UK ministers to make good on a promise to increase the current inheritance tax (IHT) threshold (nil band rate) to £1 million and has branded the current IHT system as inefficient and unjust, at a time when the country is facing rising inflation.
The UK think tank has banded together with the recently created Conservative Growth Group, led by Chairman Ranil Jayawardena, MP, to create a new report entitled “Family Friendly Taxation”. The document was co-written by Jayawardena and Tom Clougherty, research reporter for the CPS, and calls for UK families to now be placed at the heart of the country’s tax system.
In response a spokesperson for the treasury commented:
“More than 93% of estates aren’t expected to pay any inheritance tax in the coming years and estates of surviving spouses and civil partners can already pass on up to £1m without an inheritance tax liability.”
They added that while all taxes are kept under review, introducing additional tax allowances could over complicate the income tax system and be expensive.
UK citizens with concerns about the burden of an IHT bill payable on their estate by those they leave behind often consult specialists in financial planning in Chester, Manchester and other major cities. Wealth managers help their clients to prepare for such scenarios with tax-effective strategies and protective policies which can mitigate the size of bills or cover their costs in total.
