UK INHERITANCE TAX AMONG WORLD’S HARSHEST – Chancellor urged to scrap levy that is ‘more punishing’ than it looks 

Britain has one of the harshest inheritance tax regimes in the Western world, research claims.

Rachel Reeves is being urged to scrap the levy after a new report found the UK’s system is “far more punishing” than it looks on the surface.

In Britain, inheritance tax is set at 40 per cent on all assets above a certain threshold, regardless of who they are left to.

This rate is average when compared with other developed nations, according to a new report from the Institute of Economic Affairs (IEA).

However, the think tank found the nature of the UK’s system means it is in fact harsher on parents than most other Western countries.

This is because, unlike Britain, many other nations provide lower rates or total exemptions for people passing their wealth to their children, as opposed to friends or other family members.