1. Do you think these rules should apply to all businesses passed down through families, rather than just to farms? (ie - what is so special about _farms_?)
2. the 7 year gift rule does seem to make a bit of joke of inheritance tax, doesn't it - IHT becomes the tax for the unprepared & those who die unexpectedly young? What is the point of having both IHT and the 7-year rule?
3. Do you have a view of what is _in_principle_ the right level of IHT? Is it a social justice tax (in which case is it well designed?), or is it primarily an efficient revenue raising tax (in which case is it actually efficient?), or is it simply a politically convenient tax?
4. If the last, then how do you go about thinking, more generally, about intelligent micro-reforms - like the one you suggest - versus arguing for a more profound overhaul?
When the state is 40%, all tax is Colbertian - that is, we need the money, and the goose does not like being plucked. Thus we have oddities such as the 7 year rule because we need the money and we are not willing to tax gifts...
Fascinating, as ever, Tim. A few questions:
1. Do you think these rules should apply to all businesses passed down through families, rather than just to farms? (ie - what is so special about _farms_?)
2. the 7 year gift rule does seem to make a bit of joke of inheritance tax, doesn't it - IHT becomes the tax for the unprepared & those who die unexpectedly young? What is the point of having both IHT and the 7-year rule?
3. Do you have a view of what is _in_principle_ the right level of IHT? Is it a social justice tax (in which case is it well designed?), or is it primarily an efficient revenue raising tax (in which case is it actually efficient?), or is it simply a politically convenient tax?
4. If the last, then how do you go about thinking, more generally, about intelligent micro-reforms - like the one you suggest - versus arguing for a more profound overhaul?
When the state is 40%, all tax is Colbertian - that is, we need the money, and the goose does not like being plucked. Thus we have oddities such as the 7 year rule because we need the money and we are not willing to tax gifts...