Oct 19 2006
The Tax Reform Commission launched a year ago by the Conservative party has published its findings this week and calls for reform resulting in a less complex tax system, including the abolition of inheritance tax (IHT).
Chaired by Lord Dorsyth of Drumlean, the report, Tax Matters: Reforming the Tax System, states that the economy in Britain would be better served by lower taxes that are simpler and more competitive.
The report advocates the replacing of IHT with a short-term capital gains tax payable on death, with the family home being exempt from such tax, noting that IHT no longer solely applies to the wealthy, as was originally intended.
Lord Forsyth said: "Tax systems which are simple, stable and transparent encourage investment, employment, tax compliance and a higher quality of life. They are better for everyone."
In September, financial services group Friends Provident warned grandparents wanting to leave money to their grandchildren to be aware of IHT and the means of avoiding it through making use of the nil rate band.
