Super-rich inheritance tax considered
The Labour Party is to study the findings of report by a leading think tank into the possibility of introducing a 50% inheritance tax for the super-rich.
Link: Soaring house prices deliver Treasury windfall
Undertaken by the Institute for Public Policy Research, it claims the chancellor could raise £147m a year through the special tax rate.
Downing Street distanced itself from the report but opposition parties claimed Labour had ‘let the cat out of the bag’ and was planning a raft of tax rises if they win the next election.
The IPPR plan would see the IHT threshold remain at £263,000.
Above that, the 40% tax rate would be replaced by 22% marginal for up to £288,000, increasing to 40% for amounts up to £763,000.
The 50% rate would only apply to estates over £763,000.