Inheritance tax (IHT) is likely to remain in place despite its unpopularity, a leading expert has claimed.
Alan Auerbach, professor of economics and law at the University of California at Berkeley, said although fewer analysts see a future for capital income taxes ' which includes IHT - it still has a part to play in the tax system.
Delivering the annual lecture for the Institute of Fiscal Studies (IFS), Auerbach said eliminating capital income taxes "is not likely, nor is it particularly desirable".
"Eliminating all taxes on capital income gives up much more revenue than simply eliminating the tax on the normal return to new saving, and does little for the cause of equity, in fact and in appearance," he said.
The professor argued that although IHT discourages saving like other capital income...