The UK government plans to abolish the inheritance tax in 2024. This means that heirs will not have to pay tax on property inherited.
The current inheritance tax rate in the UK is 40% for estates exceeding £325,000. The abolition of the tax will have significant implications for investors, both within the UK and internationally.
This will give investors more freedom to manage their property. They will be able to transfer their assets to heirs without additional bureaucracy, leading to increased investments in long-term assets such as real estate and stocks.
Moreover, the abolition of the tax could make the UK a more attractive place to live and do business. As a consequence, it could attract foreign investors and boost the country’s economic growth.
However, there are also some potential drawbacks to the abolition of the tax.
For instance, this action could lead to an increase in economic inequality. Wealthy heirs will benefit more from the abolition of the tax than poorer heirs.
Another disadvantage is that the UK government will lose about £25 billion a year as a result of the abolition.
What’s your opinion on this news?