Wales TUC – Cutting inheritance tax will benefit just 2% of people in Wales

The organization representing labor unions states that decreasing the tax on inherited wealth would result in an immense benefit for the richest individuals while depriving public services of necessary funds. As of now, couples who are married can transfer up to £1 million to their offspring without being taxed. A study conducted by the TUC reveals that the majority of voters are against decreasing the tax on inherited wealth.

New analysis published today by the Wales TUC reveals that only a small proportion of estates in Wales, just 2%, would feel the effects of a potential inheritance tax cut announced in the UK Chancellor's Autumn Statement this Wednesday.

According to an examination of the government's records, only 790 estates out of the 38,575 individuals who passed away in Wales during the 2020/21 fiscal year were obligated to pay any form of estate tax. These are the most recent statistics available.

According to the examination, individuals residing in London and the Southeastern region would reap the most significant rewards if the inheritance tax were lowered.

Properties located in London and the southeastern region of England are thrice as probable to be subjected to inheritance tax as in Wales.

However, even in London, where 93% of estates are located, and the South East, where 94% of estates are located, a significant majority are exempt from paying inheritance tax.

Fair Inheritance Tax Laws

At present, a majority of couples who tie the knot can gift their offspring with a considerable sum of £1 million without being taxed.

People are only required to pay an inheritance tax of 40% for possessions and riches over £1 million. Although there are certain ways to avoid paying this tax for certain families, resulting in no tax being paid on their assets valued over £1 million.

The IFS has approximated that if the inheritance tax is abolished, the top 1% of rich people would receive half the monetary advantage, obtaining an average tax reduction of £1 million.

According to the Wales TUC, reducing inheritance tax for millionaires would result in a significant giveaway of resources to the rich and deprive essential public services of much-needed funds.

Many individuals in the United Kingdom do not get an inheritance or are not charged any tax on their inheritance. Only a tiny proportion of estates (4%) have to pay an inheritance tax. According to the Wales TUC, eradicating inheritance tax is an act of generosity solely to benefit a tiny and rich group of people.

Earlier this year, the Wales TUC conducted a survey that revealed a significant portion (60%) of the population is opposed to reducing the inheritance tax threshold of £1 million. Meanwhile, only 20% of the respondents expressed a desire to see the tax lowered.

A recent survey, funded by the TUC and conducted by Opinium, indicated:

According to the Wales TUC, if the Conservatives lower the inheritance tax, it would be considered as decreasing equal opportunities and standards.

The newest predictions from the OBR show that inheritance tax will add a considerable amount of £7bn to the government's funds each year.

Based on IFS analysis, it is predicted that inheritance tax revenue will climb from roughly £7 billion presently to approximately £15 billion in the next ten years.

Shavanah Taj, who holds the position of General Secretary in Wales TUC, expressed her thoughts on a certain matter.

The Autumn Statement for this week is centered on political decision-making.

During a period where individuals are facing financial difficulties due to the high cost of daily necessities, it would be inappropriate to provide an enormous tax reduction to a limited number of rich individuals.

Hardly anyone in Wales has to pay inheritance tax, but if the amount is reduced, funding for our essential public services will be diminished once more.

Reducing it drastically would mean lowering the standards.

The British government, specifically the Conservative party, has caused severe damage to the country and is determined to exacerbate the situation.

It's time to start fresh. We require an economy that acknowledges the value of hard work, rather than just accumulating riches.

The quantity of properties that result in a tax fee.

The proportion of deaths that incurred an Inheritance Tax levy.

The percentage of IHT paid in the area compared to the overall IHT paid.

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