- About Us
- Contact Us
“A crushing, horrible, unfair disaster”. That’s how President Trump described inheritance tax; he aims to abolish it by 2025. Other countries have already repealed it – Russia, Australia and Sweden to name a few. But why has one of the oldest taxes (dating back to the days of the Roman Emperor Augustus) become so unpopular with governments? There are four main reasons.
It’s not fair
Many perceive it as a “double tax”, forcing them to pay out on their already taxed income once they pass.
People hate it
People are naturally protective of wanting to secure a legacy for their loved ones and they do not want to see almost half of it taken away by the state.
People don’t pay it
According to This is Money, “[in the UK] just 1 in 20 estates pay inheritance tax now”.
It doesn’t work
In South Korea, despite inheritance taxes of up to 65%, multinational companies known as chaebol (e.g. Samsung and Hyundai) are family dynasties, exploiting various legal loopholes to pass on the wealth to successive generations.
But does inheritance tax deserve this negative reputation? Let’s take a look at the other side of the coin.
It promotes equality
Arguably, there’s never been a greater need to disperse wealth, with half of Europe’s billionaires inheriting their riches. And despite the case against it, many countries still see inheritance tax as an effective tool to help create a fairer society.
It’s not the only double tax
Sales tax is also a double tax, yet it doesn’t receive anywhere near the same kind of ire.
It fosters hard work
In the New Statesmen article In defence of inheritance tax, the political commentator Stuart White stated, “the tax helps ensure that wealth is distributed more in line with thrift and hard work because it prevents the spendthrift and the lazy maintaining wealthy lifestyles through inheritance”.
Most countries still have it
Only 15 OECD countries levy no taxes on property passed to lineal heirs.
To conclude, the bell is tolling on inheritance tax (albeit slowly). Rightly or wrongly, it generates resentment in the public like no other tax, and politicians have taken note. People despise the thought of having the money they’ve saved for their entire lives being appropriated by the taxman. If two friends are willing to go as far as this to avoid paying it, it may suggest that inheritance tax’s time is up.
But whatever your views on the tax, know that our experts can help you leave a legacy to your loved ones in the most tax efficient way possible.
Earlier this month, the Senate voted in Donald Trump’s controversial $1.4 trillion tax reform bill by the narrow margin of
To say that there’s been a backlash against globalisation in recent years would be an understatement. From demonstrations in France
“May you live in interesting times” goes the Chinese expression. In fact, it’s actually more of a subtle barb to
Earlier this month, the Slovenian Prime Minister, Miro Cerar, stated that he “want[s] to position Slovenia as the most recognised
In the UK, they’re known as Generation Y, in Germany Generation Maybe, and China has labelled them as the generation
Rodney Sutton, head of manufacturing at Kreston Reeves, recently shared his thoughts on the UK manufacturing industry following the referendum
The adoption of international accounting standards has brought many benefits to the private and public sectors. This being said, there
Remote working is becoming a way of life for many professionals and the ability to work in a variety of
A common global language for business affairs, IFRS Standards are required by more than 120 jurisdictions in the world. Recently,
Automated technologies and artificial intelligence in our society will challenge many professions in the future. Some of them may be
Crowdfunding is still relatively new but should still be considered as a viable source of equity. Nowadays, it is providing
A legal amendment to the Finance Bill recently accepted by the UK government may pave the way for big changes
In the business world, there are bumps on the road and financial setbacks. In this situation, it is easy to
Day by day, technology is becoming an essential part of our lives, as the way we manage our financial life,
A new generation is coming to challenge the market. The Millennials make up a quarter of the US population and
Managing change is one of the biggest challenges for businesses as it requires a huge effort from managers and organisations
Sustainability reports are released by companies and organisations of all types, sizes, and sectors, from all over the world. A
Accounting is an indispensable tool for entrepreneurs to manage their business. The data provided by competent
Thinking about the risks involved in business has become an essential part of an enterprise’s strategy. Risk management enables organisations
When a business does not achieve its expected results, it may be time to think about implementing change. In these
The Financial Times recently reported the dispute in the courts between the UK supermarket chain Sainsbury’s and MasterCard. The Competition
For many, the accounting profession may not seem the most attractive in the world. But with technology and innovation at our hands, this is about to change.
By following these five steps, communication has everything it needs to flow better, regardless of where your business is located and where the people you
The need to go global is something that has emerged over the past decade and promises to challenge business for the next coming years.
Recently a considerable change in the SME market was announced through business news on the internet. The Big Four have
There are five topics that we must remember when dealing with working personal relationships in international business…
Slowly, one of the last socialist countries in the world is preparing to make changes to its economy, but how will this be done?
Developing countries attract the attention of investors by offering good opportunities and new markets, making them attractive for anyone thinking of expanding their
Through a mobile app, a small business can promote its brand, products, and services, expand its sales channels, interact with the target audience and get
Last month, experts at the Milken Institute Global Conference in Los Angeles looked at certain megatrends and predicted several economic scenarios for 2040 to
Your browser (Internet Explorer) is out of date.
It is no longer supported by Microsoft and therefore may not display all features of this and other websites. Learn how to update your browser here