An international organisation specialising in intergovernmental economics has advised Chancellor Rishi Sunak that post-pandemic, the current inheritance tax allowances should be amended to raise more money for governments.
Inheritance tax (IHT) is a levy charged on a person’s estate when they pass away. Here in the United Kingdom, it is set presently at 40% tax above an established threshold, which in most cases is £325,000. UK consumers confused by the complexities of IHT can rely on professional financial planning services in Chester, London, Birmingham, and other major UK cities for expert advice.
Inheritance tax bills paid by beneficiaries already sees the Treasury receive billions of pounds, but now a new report as lockdown eases is suggesting that the Government approaches this form a of taxation using a new approach.
The report released by the Organisation for Economic Cooperation and Development (OECD) has stated that Inheritance Tax must now comprise a greater part of tax revenues for governments around the world in reaction to the pandemic.
“Inheritance taxation has the potential to play a particularly important role in the current context.”
The organisation warned in its document called ‘Inheritance Taxation in OECD Countries’, that in the next 10 years, wealth inequality will likely increase if these dedicated death duties do not rise.
It looked at the notion of inheritance along with the gifts and estate of all OECD member countries and studied how taxation on these elements could best play a part in raising revenues for world governments.