Of all the great intractable debates of our time (toilet roll over or under, jam or cream on your scone first…), the “right amount” of inheritance tax will surely be the last to be resolved.<\/p>\n\n\n\n
One side takes the position of: “It’s my money, I’ve already paid tax on it at least once, why do they get to tax it again?”<\/p>\n\n\n\n
The opposing argument is: “The tax system needs to level the playing field, otherwise inequality will compound over generations. Some people will inherit nothing; others will inherit millions. By taking a slice, the tax can be used to help those who are less lucky.”<\/p>\n\n\n\n
It’s hard not to be sympathetic to both of those views.<\/p>\n\n\n\n
However…<\/p>\n\n\n\n
It struck me the other day that what we have in the UK isn’t actually an inheritance tax at all \u2013 it’s an estate tax. This means that the “estate” of the person who died is taxed, then whatever is left over can be passed on. (It’s the same in the US.)<\/p>\n\n\n\n
You can see why this makes HMRC headquarters the most haunted building in the country (I imagine).<\/p>\n\n\n\n