A staggering 90 percent of high earners think that inheritance tax should be halved, new research shows.
Data from the 5th Saltus Wealth Index showed that 90 percent of High Net Worth Individuals think IHT should be cut – on average, to 20 percent – and six percent think it should be scrapped altogether.
The research, which surveyed 2,000 people with investable assets of £250,000+, found that just four percent of respondents consider 40 percent to be a fair rate of IHT.
The respondents said that “IHT should be scrapped given that tax has already been paid on the money concerned.” and “Scrap IHT. The money has been taxed before.”
Of the 2,000 people surveyed, 10 percent think IHT is ‘the most unfair tax’ rising to 44 percent of retirees.
Mike Stimpson, partner at Saltus, said: “There is a common theme amongst HNWI – taxing money that has already been taxed once is unfair.
“IHT falls into this category, and evokes very strong feelings amongst our respondents – something we also see a lot amongst our own clients.
“IHT has long been a bone of contention, often labelled a ‘death tax’ the chief critique is that it is a form of ‘double taxation’ and the older generation particularly hate it because they feel they should be able to leave behind as much cash as possible to their children.
Mr Stimpson advised that there are “many options for people who want to pass on their wealth as efficiently as possible” including “gifting and giving away cash during their lifetimes” as well as “trust funds, charitable giving and funeral plans”.
The bad will towards IHT is particularly evident in retirees, 48 percent of whom believe the tax should be abolished altogether.
Similarly 46 percent of over 55s support its abolition and the rest think it should be cut drastically, to an average of 11 percent.
15 percent of those surveyed said they want reducing IHT to be the top priority for the next Government.
