Call for Inheritance tax to be merged with Capital Gains Tax

By Lenore Rice

The Institute of Directors is calling for inheritance tax in Northern Ireland and the rest of the UK to be scrapped, with the group's head of taxation, Stephen Herring, describing it as one of the most "complicated and unpopular" taxes.

Mr Herring says the current inheritance tax system has become full of a "ridiculous number of exemptions, reliefs, tapers and time limits" and is no longer fit for purpose. He says it should be scrapped and incorporated into the current Capital Gains tax system, which the Institute of Directors also believes should be changed with a cut from 18 per cent for basic rate taxpayers to 15 per cent. Mr Herring said that it is the "owners of modest homes" that are being hit hardest by inheritance tax, and that the government should scrap it altogether rather than implementing periodic increases to the inheritance tax threshold.

Inheritance tax is currently payable at 40 per cent rate on any assets above the £325,000 threshold, with married couples able to combine their exemption to have a £650,000 threshold.

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