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flag Britain's inheritance tax, criticized as harsh, faces calls for reform over its 40% rate and impact on families and businesses.

flag A report by the Institute of Economic Affairs calls Britain’s inheritance tax one of the harshest globally, criticizing its 40% rate and lack of exemptions for gifts to children. flag The think tank argues the tax discourages saving, investment, and entrepreneurship, urging abolition or major reform. flag While the Treasury says fewer than 10% of estates will pay it, with up to £500,000 tax-free—£1 million in some cases—critics say the system harms middle-income families and small businesses, fueling debate over its impact on economic growth and wealth distribution.

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