Scrap hated death tax, say bosses

INHERITANCE tax should be scrapped as part of a radical reform of Britain’s tax system, according to the Institute of Directors.

Stephen Herring, the group’s head of taxation, said: “Inheritance tax is one of Britain’s most complicated and unpopular levies.

“With a ridiculous number of exemptions, reliefs, tapers and time limits, no sane person would ever design the current system from scratch.

“It falls on owners of modest homes and those unlucky enough not to be able to foresee the time of their death, rather than the truly wealthy.

“It is time to put the nail in the coffin of the hated death tax. Capital Gains Tax ( CGT) can perform many of the same functions and we want George Osborne to merge the two.

“CGT should be levied when people pass on assets at death but in a much more straightforward and easy- tounderstand way.

“This would be affordable for the Chancellor and would send a powerful message that he is committed to take bold steps to simplify Britain’s labyrinthine tax system.”

The Daily Express’s hugely popular crusade to scrap the hated inheritance tax is credited with forcing successive governments to increase dramatically what people can leave their loved ones tax- free.

Families do not have to pay the 40 per cent levy on the first £ 325,000 of assets left by an individual or £ 650,000 for a married couple.

In his July Budget, Mr Osborne went further by introducing a family home exemption, effectively raising the maximum tax- free threshold to £ 1million by 2020-’ 21.

The Institute of Directors also proposes cutting CGT from 18 per cent for basic rate taxpayers and 28 per cent for higher rate payers to 15 per cent and raising the tax- free threshold from £ 11,000 to £ 25,000.