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UK Inheritance Tax Faces Backlash: Calls for Abolition Rise

10/8/2025

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Britons Oppose Inheritance Tax

UK Inheritance Tax (IHT) remains contentious, with over half of Britons backing abolition, calling it double taxation.
IHT is 40% on estates above £325,000, raising about £7 billion annually.
Critics say it harms small businesses and forces families to sell homes.
Proponents say it promotes equality, but many view it as unfair; reform includes wealth taxes and rethinking council tax.

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Tax Policy Challenges

Raising Capital Gains Tax (CGT) could reduce revenue; receipts fell 18% year-on-year.
Institute for Fiscal Studies (IFS) urges CGT alignment with income tax; advisers warn higher rates deter asset sales.
A Pension Tax Lock petition has gained traction to stabilise retirement planning amid tax-change fears.
Cuts to the tax-free allowance have spurred early pension withdrawals, risking savers' long-term growth.

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Cottrell's Tax Scrutiny

George Cottrell, a prominent member of Reform UK, faces HMRC scrutiny over his tax residency and financial dealings, particularly related to gambling and property in London.
He claims residency in Montenegro while owning a £4 million property in London, raising compliance concerns with UK tax laws.
Labour's cabinet is split on economic policies, with some ministers supporting wealth taxes to tackle a £30-40 billion budget deficit, while others caution against potential capital flight.
The government intends to reform the homebuying system for better transparency and efficiency but is criticized for declining housing construction rates.
Labour commits to building 1.5 million homes by the end of parliament, despite a recent drop in new home construction during their tenure.

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Britons Oppose Inheritance Tax

UK Inheritance Tax (IHT) remains contentious, with over half of Britons backing abolition, calling it double taxation.
IHT is 40% on estates above £325,000, raising about £7 billion annually.
Critics say it harms small businesses and forces families to sell homes.
Proponents say it promotes equality, but many view it as unfair; reform includes wealth taxes and rethinking council tax.

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