Anne Robinson has made a smart move by giving away her £50 million fortune to avoid the taxman, and I fully support her decision. Inheritance tax, which is charged at 40% on estates over £325,000, is not a popular policy among the public. A recent YouGov poll revealed that only one-fifth of people consider it fair. After all, why should we be taxed on money and assets that we’ve already paid tax on? It should be our choice to do what we want with our hard-earned money, whether that means giving it to family, friends, or charity. Until inheritance tax is abolished or reformed, many people, like Anne, choose to give away their fortune while they are still alive to reduce the amount they would have to pay. I believe we would all do the same in her position.
There is nothing despicable about Anne’s actions. If I were in her position, the last thing I would want is for my family to deal with the hassle of sorting out tax while grieving and making funeral arrangements. It is the responsible and considerate course of action to ensure that our loved ones are not burdened with tax issues after our passing. However, this situation highlights a larger problem: the wealthy have access to top-notch accountants who can find legal loopholes to minimize their tax obligations. Celebrities like Lewis Hamilton have famously moved to tax havens like Monaco to reduce their UK tax commitments. While I don’t blame them for taking advantage of legal ways to pay less tax, it does seem unfair that the burden falls mostly on the middle and working class who don’t have the same resources. The top 1% in the UK pay 30% of all income tax revenues, but the taxes paid by the rich vary greatly.
MOST RICH PEOPLE NOT PAYING THEIR FAIR SHARE OF TAX, SAYS REPORT
According to a new report, the majority of revenue from the top 1% of earners comes from high-earning employees who pay the top rate of income tax. However, a significant number of wealthy individuals pay much lower rates due to the various ways they can pay themselves, such as through capital gains. This means that some million-pound earning employees are paying the same rate of tax as those earning just £15,000 a year.
This unfair situation can be attributed to the complicated and outdated British tax system, for which both the current Conservative government and the previous Labour government are to blame. The system is in desperate need of reform, although completely abolishing inheritance tax is not the ideal solution. It is essential for the wealthiest individuals in society to pay their fair share without exploiting legal loopholes that reduce their tax contributions.
In the meantime, individuals like Anne Robinson, who legally find ways to reduce their tax payments, should not be criticized. They are simply taking advantage of a poorly designed system.
