Grant Thornton calls for IHT overhaul
The government should either scrap the current inheritance tax (IHT) system or make significant changes to make it simpler and fairer, according to a new report from Grant Thornton.
The firm is calling for a full review after it found that far fewer people are liable to pay IHT than is commonly thought.
A survey of 400 homeowners with properties valued at more than £250,000 found a high level of confusion about who pays the tax with 62% believing they are liable when just 3% of UK estates were subject to IHT in 2010/11, according to HMRC.
Francesca Lagerberg, head of Tax at Grant Thornton, said: "We extrapolated the best features from similar tax regimes in other European countries that could be appropriate for the UK and came up with a number of options to improve the system. We then used the survey as a barometer to test how they may be viewed.
Some of the key findings were: