Public Opposition To 'Unfair' Inheritance Tax

MORE than two thirds of British people (69%) think it unfair to tax a person's estate after their death, according to new research from MORI. The survey, for Friends Provident, looks at views on inheritance tax, it's fairness as a means of generating tax revenues, and whether the current threshold (163263,000) is considered correct. Most people (57%) think the threshold should be raised and two thirds (67%) believe a 'banding' system should be introduced, so that smaller amounts attract a lower rate and larger sums a higher rate.

Topline Results

• MORI interviewed 1,975 British adults aged 15+ years
• Interviews were carried out face-to-face in respondents' homes using CAPI (Computer Assisted Personal Interview)
• All interviews were conducted between 10-14 September 2004
• Data is weighted to the GB population profile
• Where figures do not sum to 100 per cent, this may be due to computer rounding, multiple codes or the exclusion of "Not stated"
• Figures marked with a * are less than 1 per cent
• All answers are based on all respondents (1,975) unless indicated otherwise

I would like to ask you a few questions about inheritance tax. Inheritance tax is the tax on a person's estate -- in other words, their wealth -- when they die. At present the first 163263,000 on an estate is tax-free and inheritance tax is payable at 40% on everything over this amount.

Q1 In principle, do you think taxing a person's estate when they die is a fair or unfair way of raising some of the revenue a Government needs?

Q2 Inheritance tax currently starts on inherited wealth of 163263,000. Do you think the tax should start at a lower level, a higher level, or is the starting level about right? Is that a much lower/higher level, or slightly lower/higher?

Q3 Inheritance tax is paid at a flat rate of 40% for everybody. Would you prefer to keep a flat rate of 40% or switch to a tax banding system like income tax, so that smaller amounts attract a lower rate and larger sums a higher rate?

Q4 A research institute has proposed this system of inheritance tax banding:

• Estates under 163263,000 stay tax-free
• Tax paid at 22% up to 163288,000
• Tax paid at 40% up to 163763,000
• And 50% on estates above that

On balance, do you think this sounds fairer than a flat tax of 40% on all estates over 163263,000, less fair, or no difference?