In the proposals by the shadow chancellor George Osborne… the threshold would be raised from the present £325,000 to £1m. That means the yield would drop below £1bn – compared to £3.9bn taken in inheritance tax in 2007 – raising questions about where the Conservatives might make up the shortfall as they seek to tame the budget deficit
Oh dear. Allow me to set him straight.
If you make dying cheaper by cutting the taxes wealthy people have to pay to do it, then more of them will be incentivised to pop their diamond-encrusted clogs. This increased death rate will then actually lead to an rise in the overall inheritance tax take, even as the amount payable on any individual estate falls.