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Lib Dems plan wealth tax to replace IHT 'disgrace'

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Lib Dems plan wealth tax to replace IHT 'disgrace'

The Liberal Democrats have proposed scrapping inheritance tax and replacing it with a new levy on gifts worth more than £3,000, charged at the same rate as the giver's income tax liability.

The proceeds of the levy would flow into a £100 billion ‘citizens fund’ intend to help rebalance the UK’s entrenched asset inequality, party leader Vince Cable told the BBC.

Speaking as delegates arrived in Brighton for the party’s annual conference he said a major change in how taxes on wealth were charged was needed in order to head off social unrest: ‘the inequalities of wealth are massive and growing and one of the major sources of underlying dissatisfaction.’

Cable - who famously predicted a major crash ahead of the 2008 financial crisis - said it was a 'disgrace' that taxpayers had still not recovered from having to bail out the financial sector

Details of a wealth tax will be debated at the conference tomorrow as the party fights against voter indifference  while the big two political parties dominate the conversation about Brexit. From 57 MPs when it entered coalition with the Conservatives in 2010, the party’s count has dropped to 12.

Each taxpayer would receive a lifetime allowance on financial gifts of  £250,000. The party said the proposal would enable normal levels of cash transfer while preventing the richest individuals from dodging their inheritance tax liabilities by handing over large sums during their lifetimes.

John O'Connell of the Taxpayers' Alliance told the Sun: ‘It's human nature to want to provide for your loved ones and give them better lives than you might have enjoyed, so inheritance tax should be abolished rather than reformed.’

 

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