Trade union chiefs have called for Holyrood to have the power to hit the wealthy with higher inheritance tax rates. An STUC motion believes devolving the tax would raise vital cash for public services during the cost of living crisis.
Under the current system, no inheritance tax is paid on the value of estates worth less than £325,000. A 40 per cent tax is applied to cash and assets above this level, although there are exemptions for spouses and civil partners.
The so-called “death tax” is reserved to Westminster, but the STUC is of the view that it should be transferred to MSPs. Trade union leaders will meet in Dundee next week for the STUC's annual congress and they believe increasing inheritance tax could be one way of taking more money from the rich
The STUC also backs replacing the council tax with a new property levy, as well as introducing a land value tax and giving Holyrood greater borrowing powers. Other motions call for the devolution of employment law and the repeal of anti-trade union legislation, while attacking the Tory Government over the blocking of gender recognition legislation.
The Tories cut inheritance tax when David Cameron was prime minister and George Osborne was chancellor. STUC General Secretary Roz Foyer said: “The call to devolve inheritance tax is a clear indication from the STUC that every single lever of power must be pulled to help alleviate this cost-of-living crisis for working people in Scotland.
“It’s clear that, with more holes than the Titanic, inheritance tax is woefully managed and allows clever accountants with rich clients to avoid their fair share. Scotland needs a rigorous system of tax powers on wealth, income and land which redistributes wealth from the top to those in need. It’s welcome that, in his election campaign, the new First Minister shared this vision.”
Green MSP Ross Greer said: "The richest people in this country aren't paying their fair share under Westminster tax policies. Devolving the power to tax them properly is essential to building a fairer Scotland, so the STUC is absolutely right to call for basic financial powers like inheritance tax to come under the Scottish Parliament's control."
"The Scottish Greens support this demand, so Keir Starmer and Anas Sarwar need to choose whether they stand with us and with the trade union movement, or with the Tories and their rich donors."
Tory MSP Liz Smith said: “The STUC seems to assume, as Humza Yousaf did with his plans for an additional tax rate, that inheritance tax affects only the very richest, when it would have an impact on many middle-earners.
“But the chief objection isn’t to the level of tax, but to the creation of yet another artificial distinction between Scotland and the rest of the UK. Every unnecessary barrier of that sort hinders Scotland’s prospects for the sake of bolstering a separatist agenda.”
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