Government scraps controversial probate fee plans
The government has ditched controversial plans to increase probate fees that were first unveiled by Theresa May’s administration in 2016….More
Around nine out of 10 Scottish estates would be liable to inheritance tax if Scotland’s government was to implement a new levy proposed by a leading think tank.
The Institute for Public Policy Research (IPPR) Scotland says a locally focused version of the tax could raise up to £200m each year by charging a 10 per cent tariff on all Scottish estates worth more than £36,000,
Welcoming the findings, the Scottish Government said it is already talking to local councils about adding to their financial powers. Under existing legislation, the Scottish Parliament can introduce a range of new local taxes, alongside council tax and business rates, provided revenues go to local government.
Russell Gunson, IPPR Scotland director, told The Scotsman newspaper: “New taxes could see us put our money where our mouth is on the huge priorities facing Scotland. Our politicians should be far more ambitious on tax, thinking bigger to build a stronger, more progressive tax system that better narrows wealth inequalities, tackles environmental breakdown and delivers a fairer economy.”
At present, the vast majority of Scottish estates fall short of the UK inheritance tax threshold, which is levied on estates worth more than £325,000. In 2015-16, the most recent year for which statistics are available, inheritance tax raised £213m in Scotland, compared to £4.3bn across the UK.
The IPPR’s proposed system would have seen 22,500 estates affected in 2016-17 – a total of 92 per cent of all estates in Scotland. The average value of estates over the £36,000 threshold north of the Border was £247,000; creating an average tax bill of about £24,000 for those affected.