Social media commentators have described an LBC journalist’s suggestion that inheritance tax should be hiked to 100% as “insane”. Lewis Goodall said he’d be happy if the tax was boosted to 100% during his radio show on Thursday, arguing that the only legitimate source of income should be from work and not inherited assets from “mummy and daddy”. “What we’ve got at the moment is an aristocracy of wealth in this country,” he told listeners. “I’m being provocative, but you see what I mean. I would not be against a far higher rate of inheritance tax than we have at the moment, which is 40% above a certain threshold.
“That helps to fund public services, which helps level the playing field … and it will help us reduce taxes on income. Because at the end of the day, I want to incentivise work … You don’t have a right to inherit. You should have the right to work while you’re alive, and keep more of your own money. That to me is way more important than your right to just inherit some money from mummy and daddy that you did nothing to earn.”
However, X users accused the News Agents co-host of “losing the plot” by suggesting that inherited money is not “earned” by someone before being passed down through the family.
“If you cannot work hard to leave your family in a good position when you die, then what’s the point in living?” one person asked.
Another added: “You have every right to be given money by your parents because that is their money and they decide what happens to it.”
Others took offence to the idea that the state is more deserving of their hard-earned cash than their children and grandchildren.
“You don’t have the right to your parents’ money but the Government does?” one person questioned. Another said: “I shudder to think how the Government would waste [my money] in just a few seconds.”
Some also responded furiously that a 100% inheritance tax would deal a major blow to the UK economy, suggesting that such a move would “drive a mass exodus of British wealth to the United States”.
“This is a guaranteed way to watch all of the wealthiest citizens you have permanently leave your shores,” they said.
Public policy specialist Lucy Wright added: “Do you want the UK to become a poor, destitute wasteland? That’s what would happen if parents cannot leave anything to their children – they would have zero incentive to work.”
The existing inheritance tax is charged at a rate of 40% on all an individual’s assets above a threshold of £325,000. The unpopular levy can be reduced or avoided in a number of ways, including through a tax-free allowance and giving away a certain amount of money during your lifetime without it counting towards your estate.
Labour announced multiple changes to inheritance tax in the Autumn 2024 Budget, including a shift towards digitisation, a change of policy for non-UK domiciles and the introduction of a 20% levy on farmland and related buildings on estates worth over £1 million.