Inheritance tax is the only tax in the UK that is supposedly charged on wealth.
If reports from opinion pollsters are to be believed, it is also the most hated tax in the UK.
Paradoxically, inheritance tax is also one of the taxes that a person is least likely to pay in the UK. In the tax year 2020/21, which is the last for which reliable statistical data is available, just 3.73 per cent of all estates in the UK were subject to an inheritance tax charge
So, who pays inheritance tax? Whoever receives less money as a result of inheritance tax. Who is that? The people who inherit.
So the number of people who pay IHT is not the 4% of estates, it’s the number who inheirt from those estates. Which is a rather larger number, no?