Greycoat: Abolishing Inheritance Tax Could Lead to Increased Tax Revenue
Currently, in the UK, the inheritance tax rate on homes valued above £325,000 is 40%, Greycoat informs. Luckily the inheritance tax is only paid on the portion of the value above the £325,000 threshold.
Multiple exemptions to the inheritance tax rules led to only 4% of deaths in 2020 and 2021 being responsible for paying this tax. However, if the inheritance tax on these properties were abolished, it could greatly stimulate the economy. That’s entirely the whole mission of an agency such as the Greycoat real estate agency one is.
As an example of how abolishing the UK inheritance tax could benefit the entire country, in 2004, Sweden abolished their inheritance tax and the benefits of this are being experienced by the entire country. Greycoat adds that they have seen a massive amount of economic growth and increased tax revenue that can be directly attributed to a boom in entrepreneurship.
Up to now, they also experienced an increase in people transferring assets within families, and also external owners. Greycoat adds that the money people are saving is being invested into creating businesses and a large portion of the population is seeing direct benefits of this simple change.
With the opening of new businesses the UK would experience an increase in available jobs and the potential for higher wages for the general public. This simple change could also dramatically improve the real estate market for those who are interested in investing and open more people up to the possibility of creating businesses and opening storefronts than we have seen in a long time. Contact Greycoat for more specialized and customized information.