Prime minister David Cameron recently promised to raise the inheritance tax (IHT) threshold to £1m in the next parliament. The debate has been given fresh impetus by a report from the Institute of Fiscal Studies’ (IFS) think tank, which described IHT as “ineffective and unpopular”.
As the report notes, the coalition government has frozen the IHT allowance until 2017-2018. If this remains in place, nearly 10% of households will be liable for IHT by 2018, from 2.6% in 2009.
The report’s authors, Stuart Adam and Carl Emmerson, also note that scrapping IHT would be no more costly than raising [...]
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