The chancellor is missing an open goal by looking at inheritance tax while searching for the elusive billions needed to fix Britain (Treasury targeting inheritance tax reforms to help plug UK deficit, 12 August). The tax needs significant reform to make it fit for the 21st century, but it isn’t the magic bullet the government is after.
At the budget, Rachel Reeves could generate tens of billions of pounds by making tax changes that are overwhelmingly popular with the public and would be paid only by those with the broadest shoulders. Three-quarters of us want a wealth tax on net fortunes over £10m (backed by world-leading economists). Equalising capital gains tax with income tax is favoured by the majority too.
The problem is that currently there’s a Britain for the haves, and a Britain for the have-nots. If you get an income from extreme wealth (often inherited or accumulated through “passive assets” such as property or investment), you get preferential treatment over people who work as a cleaner or a nurse, or in a warehouse or classroom.
Just look at when Rishi Sunak released his tax return. He is from one of the UK’s 350 richest families, yet paid the same effective tax rate as an average teacher, despite having income more than 50 times higher.
That doesn’t sound fair to me, and it won’t sound fair to millions of people across the country who are struggling to get by and fed up with politics working for the rich and powerful over everyone else.
Caitlin Boswell
Head of advocacy and policy, Tax Justice UK
• Labour clearly has the interests of the 1% at heart above all others. Inheritance tax is hated by most; it appears to be a tax on ambition. Work all your life and, when you die, the government comes along and helps itself. In contrast, it is easy for the 1% to avoid it, using trusts, hiding assets offshore and there are even insurance policies that pay out if your estate is hit by IHT.
Yes we need a wealth tax, but an even easier choice is simply to equalise capital gains and dividend tax rates with income tax and national insurance, and remove the additional capital gains and dividend tax allowances, so everyone gets a single £12,570 personal allowance.
Christopher Bowser
Holmer Green, Buckinghamshire
• Amazingly, there are people who think somebody earning £20,000 a year should pay tax, while people who inherit £200,000 shouldn’t.
Alan Fairs
Bewdley, Worcestershire
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