The professional body for inheritance advisers STEP has said there should be a focus on reforming inheritance tax (IHT) rather than scrapping it.
This follows a Daily Telegraph report which said around 50 Conservative MPs have demanded that UK prime minister Rishi Sunak should scrap IHT, which they describe as “morally wrong.”
But Simon Hodges, director of profession at STEP, said: “Inheritance tax is in dire need of reform.
“STEP believes that it is too complex and unfair. Instead, we would like to see a low flat-rate estate tax regime with few reliefs and exemptions. This would greatly simplify the system, reduce avoidance and increase fairness for families.
“Any changes must look at the tax as a whole, not just individual reliefs and rates. If they were scrapped and amended in isolation, it could lead to increased avoidance and abuse.”
Receipts from IHT have been reaching eye-watering levels. HM Revenue & Customs (HMRC) recently released data which found that IHT receipts in April 2023 had hit £600m, up by £100m compared to the previous year.
This closely follows its announcement that the IHT haul for 2022/23 had rocketed by £1bn in the last year to £7.1bn ($8.9bn, €8bn).
