Inheritance Tax

Why we need to reform inheritance tax

Published on 6 December 2023

We discuss the issues with inheritance tax and how to reform it.

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Inheritance tax is arguably the UK’s most unpopular tax - a recent YouGov poll found that just 20% of people deemed inheritance tax ‘fair’. Yet most people are unaffected by it - only a minority of estates currently pay inheritance tax.

In this episode, Paul Johnson is joined by Arun Advani and David Sturrock to discuss the intricacies of inheritance tax. They cover the inequality inherent in the current system, the distortion of economic incentives resulting from exemptions, the small percentage of estates that actually pay the tax, and how it affects to social mobility.

Zooming In: discussion questions

Every week, we share a set of questions designed for A Level economics students to discuss, written by teacher Will Haines.

1. How is inheritance tax structured? 
2. Why do only 4% of deaths involve paying inheritance tax? 
3. Evaluate the case for abolishing inheritance tax. 

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