Petition Replace Inheritance tax with higher income tax on gifts

Inheritance tax (IHT) came in to tax those individuals in society who had amassed wealth, passed it on to the next generation who in turn could live off the wealth and never contribute to society or pay tax. IHT is now so complex but easily avoidable by the wealthy it is not fit for purpose and when charged on low income families with a large asset such as the family home can lead to the home being sold to pay the tax.

Instead the government should charge a higher rate of income tax on income earned from such assets. This is already in place for assets held in a trust where income and gains are subject to the highest rate of tax. It could easily be extended to general inherited assets. By taxing income and gains rather than gifts it would only tax the benefit of the wealth rather than depleting funds each time they are passed on. Any assets that are sold would become normal assets again.

It would also remove unnecessary red tape on death and encourage donors to give freely.