Taxing ignorance
It is slightly worrying that the Snptreasuryspokespersonin Westmister, Alison Thewliss, demonstrates such total ( or wilful) ignorance of UK Inheritance Tax (IHT) (Scotsman, 10 August). If one were of a cynical turn of mind one might think that she was merely using this issue as yet another log to throw on the fire of Snpmanufactured grievances – perish the thought!
It would be helpful if Ms Thewliss could clarify her reference to “Westminster having repeatedly failed Scotland on this issue” and also the “loopholes allowing the wealthiest individuals to avoid paying their fair share”. This is vacuous virtue signalling of the highest order, particularly as it has no basis in fact. It is, however, grist to the mill of the SNP’S enthusiastic disciples.
Dealing first with Westminwhere ster having “failed “Scotland. Is she suggesting that Scotland yet again deserves special treatment because its people are more interested in achieving fairness than the rest of the UK? She is obviously unaware of the steps taken over the last 25 years by Westminster governments of all political hues to attack what were undoubtedly past “loopholes”.
What has happened over this period is the tightening up of the taxation of trusts, gifts with reservation, pre-owned assets tax, the strengthening of the rules relating to domicile, the freezing of the IHT Nil rate band and keeping the annual exemptions at the levels of more than 20 years ago. The present Conservative government is shambolic in so many respects,but it has been the firmest in cracking down on the more sophiscated and blatant abuses. Ms Thewliss is clearly unaware of the recent IHT DOTAS (Disclosure of tax avoidance schemes) legislation,which is still being strenghthened, and I suggest she has a look at it and the other preventative legislation referred to above before making any more factfree statements.
I think we are also entitled to ask how Ms Thewliss, given the increasing reduction in “loopholes”, proposes to increase meaningfully the inheritance “take” in Scotland. She seems oblivious to the difference beween IHT exemptions and reliefs on the one hand, and her much-trumpeted “loopholes” and abuses on the other. Is she proposing to abolish or reduce the exemtions for transfers between spouses or civil partners and gifts to charities? What about the reliefs for farmers and agricutural land, and for businesses? ”Come to Scotland and pay more Inhritance Tax” is hardly the most attractive of slogans.
There is, however, one area significantly more tax could be recovered and that is further tightening of the Inheritance Tax rules for those claiming to be “nondomiciled” in Scotland. Among their number are some prominent SNP supporters.
JOHN DONALD Essex Road, Edinburgh