Realist, not conformist analysis of the latest financial, business and political news

Ain’t Tax Justice UK Perceptive? Tax Breaks For Millionaires Go To Millionaires!

You’d think that people campaigning about taxation would be able to understand the basics of taxation, no? Although, given the competition from people like the Senior Lecturer perhaps not. But this is still pretty good even given those strictures. Tax Justice UK has just noted that tax breaks for millionaires are mostly enjoyed by millionaires. And isn’t that a surprising outcome?

The background here is that there are various reliefs about inheritance tax. Agricultural land doesn’t pay it. Family held businesses don’t and so on. And then they go on to complain that these breaks are enjoyed by people who are already wealthy. Shame!

[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Tax Justice UK’s new research finds the government is handing out up to £666 million a year in inheritance tax reliefs on land and business property to families who are already well off.[/perfectpullquote]

Very much the number of the beast there. But this isn’t odd at all. For as they also note:

[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]Inheritance tax is unpopular, but most people don’t own enough to pay it since every couple can pass on up to £950,000 of their wealth tax free.[/perfectpullquote]

That is, only millionaires pay inheritance tax. So, any breaks there are on inheritance tax are quite obviously going to be enjoyed by millionaires. Because no one except millionaires has to pay that inheritance tax.

It’s a complicated concept, isn’t it? Who knows, one day maybe we’ll get tax campaigners who are able to understand it. Until then, of course, Shame!

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Rhoda Klapp
Rhoda Klapp
5 years ago

Strictly speaking the passer doesn’t pay. The punter, or in this case the legatee, pays. Who may or may not be a millionaire. Who may in fact be several individuals. The dead millionaire has no need to give a toss.

thammond
thammond
5 years ago
Reply to  Rhoda Klapp

Exactly. If a billionaire left it all t the NHS, would they be complaining if he minimised the tax paid?

Q46
Q46
5 years ago
Reply to  thammond

It would not be ‘enough’. The NHS never gets, can never get, ‘enough’. There simply isn’t ‘enough’ in the Universe to satisfy the ever open maw of the World-Class-NHS ™.

literate3
literate3
5 years ago

“up to” is always misleading even if the advert isn’t a straightforward lie [“at up to 50% off” invariably reflects a price “somewhere between 50% and 100% of the price” not “somewhere between nil and 50% of the price”] Then “handing out” – they are not handing out a single penny, they just are omitting to seize the property of private citizens. Thirdly “every family can …” – bullshit! Every person can pass on up £3000 per annum free of IHT by making an inter vivos gift, but to utilise the large concession you need to live in an expensive… Read more »

Q46
Q46
5 years ago

If the poor want tax breaks, they should go out and work harder and become millionaires.

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