Inheritance tax ‘should be reduced’ from 40 to 20 percent | Personal Finance | Finance

Under AAT’s proposals, all pension funds left at death would also be taxed at a flat rate of 20 percent, unless passing to a spouse.

AAT has argued changes to the regime will be simple enough for all to understand.

With the tax “low enough for people to voluntarily pay”, Britons could make substantial savings as the organisation believes tax planners and financial advisers would no longer be necessary.

AAT states the tax policy would be “fairer and more effective”, while still enabling the Treasury to take tax to reduce the deficit or invest in public services.

Inheritance tax is an issue which has already arisen in the ongoing Tory leadership contest.