Following recent discourse in the media, I am today joining calls for the government to abolish inheritance tax.
Many people work hard all of their life from humble beginnings to create a stable life for themselves and their loved ones. And very often they cannot pass their savings to their loved ones because of the inheritance tax.
Families can inherit up to £325,000 without paying the tax and if your money passes this limit, the state can take up to 40% of your money when you pass away.
Almost 40% of homes in England and two thirds of family homes in the South East are worth more than the basic allowance. So for parents trying to help their children and grandchildren onto the property ladder, this tax is damaging. And particularly damaging in the South East. Furthermore, the inheritance tax punishes ordinary people who pay their taxes and save throughout their lives.
I find it profoundly unjust and wrong that at what can be the most difficult time in someone's life, invasive investigations into their family estates are being conducted the state. And that a loved one's ability to protect their family after their passing is significantly reduced by the sheer amount of money taken by the state through this charge.
Considering that nations such as Sweden, Australia and New Zealand don't charge families an inheritance tax, it is even more evidence that this is an unjust levy. Action can be taken to protect families though.
In 2007, George Osborne pledged to raise the inheritance tax threshold to £1million so that only the very wealthy had to pay the charge. The threshold has since remained at £325,000 and has been frozen until 2028. Given that many are concerned about the future of their life savings, strong action needs to be taken to protect families in difficult circumstances.
The inheritance tax must be abolished. It is right thing to do at what can be an incredibly difficult time for families.
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