Archbishop Slams 'Ancient Evils' And Backs Inheritance Tax Reform
- AuthorMike Downey
The Archbishop of Canterbury, Justin Welby, has ruffled some feathers by using colourful, biblical language to condemn some of the UK’s current economic practices and their apparatus.
The churchman delivered a series of condemnations - at a gathering of the TUC Congress - of Universal Credit, zero hours contracts and the gig economy, as he mooted a series of economic proposals, some of which were drawn up recently by the Institute for Public Policy Research, and which include replacing Inheritance Tax with a Lifetime Gifts Tax.
While some have baulked at The Archbishop’s description of the gig economy and zero hours contracts as ‘a re-incarnation of an ancient evil’, a few of the points he made are mirrored in a recent report by the government think tank, the Resolution Foundation, which has concluded that Inheritance Tax in its current state should be scrapped and replaced with a system which is fairer and harder to avoid.
The most fundamental change it has recommended would be the shifting of the burden of the tax from the estate of the deceased to the recipient of the inheritance. The name of the new tax is proposed to be Lifetime Receipts Tax and this would be paid by the beneficiaries.
Under the mooted scheme, each person would have a Lifetime Receipt Tax Allowance of £125,000, indexed to inflation. Any inheritance received up to £500,000 (i.e. the first £375,000) would be taxed at 20 percent after the first £125,000, and then at a higher rate of 30 percent on any inheritance above £500,000. Lifetime gifts would be included in the tax, but there would still be the annual £3,000 allowance, and, importantly, normal gifts out of income relief would be abolished.
Further details about the proposed changes can be found in my previous blog on this topic, here:
For more information about effective Lifetime Planning, contact Mike at: email@example.com or call: 02920 855277
Mike is a Director at JCP Solicitors and Head of Lifetime Planning in South East Wales overseeing the Wills and Probate team in Caerphilly, Cardiff and Cowbridge offices. He deals with legal matters comprising Wills and Probate, Court of Protection and creating Lasting Powers of Attorney. He is also a Professional Deputy appointed by the Court of Protection and also acts as Attorney under Lasting Powers of Attorney for Clients.