The Institute of Directors have recently stated that as part of a radical reform of Britain’s tax system, Inheritance Tax (known as the death tax) should be scrapped.
Stephen Herring, the group’s head of taxation, said “Inheritance tax is one of Britain’s most complicated and unpopular levies.”
He further stated that due to the “ridiculous number of exemptions, reliefs, tapers and time limits, no sane person would ever design the current system from scratch.”
The Institute of Directors believe that Capital Gains Tax (CGT) can perform many of the same functions as Inheritance tax and have called upon the Chancellor, George Osborne to merge the two systems. The idea being that a straightforward and easy to understand tax system would be created.
As part of the reform of Britain’s Tax System they have also suggested that the rate for Capital Gains Tax is lowered to 15% and that the tax-free threshold should be increased from £11,000 to £25,000.
You can read Herring's full article on the subject here.
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