Proposal: Replace inheritance tax for those eligible to pay it, with a life legacy tax to be paid at age 70.
Benefits Huge one off contribution to Treasury for all current folk liable for inheritance tax over age 70 Cash ring fenced for economic, green agendas.
A contribution thereafter for folk who subsequently turn 70.
I would hope folk would be more inclined to pay (to leave a legacy) and take an interest in a particular project perhaps related to their working life skills. They may even want to pay more or could volunteer to top up their life legacy tax in some cases – instead of putting effort into reducing inheritance tax.
Examples of what a life legacy tax would be used for: Small Scale: Loads of small projects – pay for installation of local church ground source heat pumps (with percentage heating savings perhaps going to treasury for a specified period of time) Medium Scale instead of just replacing unsafe cladding with safety cladding on affected buildings, extra cash from life legacy could be put into more expensive cladding (solar panelling cladding) – reducing the carbon footprint or electricity costs for residents (if the latter Treasury may want to take a small percentage of the property when sold). Large Scale Swansea Tidal Lagoon
How would it work and who would pay upfront cost as inheritance tax is mostly tied to property etc: Folk who turn 70 and wish to pay and can afford to.
Special Government bond
Special long term saving plans (ISA, equity release style plans)
When person dies estate pays the life legacy bill back to the pension funds etc.