Inheritance tax (IHT) is a subject which usually divides people
into two camps. The first group takes the view that IHT is evil;
people have already paid enough tax during their lifetimes,
whatever they leave behind on their deaths has been taxed already,
so paying any additional tax on death is just unfair.
In contrast, opponents of this view are often motivated by
negative feelings towards the first group, or the wealth they have,
and think that the government should take it off them and/or
redistribute it to others who for whatever reason are less well
off.
So it is difficult to get people to stand back from the issue
and look in principle at what is going on with IHT.
The complication is that while we are alive, tax is in general
charged on income or profits, yet once we shuffle off this mortal
coil, IHT is charged on capital, being what our after-tax income
and gains becomes.
