{"id":11568,"date":"2023-09-25T14:25:50","date_gmt":"2023-09-25T13:25:50","guid":{"rendered":"https:\/\/www.taxpolicy.org.uk\/?p=11568"},"modified":"2023-09-25T15:19:08","modified_gmt":"2023-09-25T14:19:08","slug":"iht_compare","status":"publish","type":"post","link":"https:\/\/heacham.neidles.com\/2023\/09\/25\/iht_compare\/","title":{"rendered":"How does UK inheritance tax compare with other countries?"},"content":{"rendered":"\n

The OECD tax database has data on inheritance tax systems across the world, and we can use that to plot theoretical estate\/inheritance tax effective rates in each country. In other words, for estates going from 1x average earnings to 100x average earnings,1<\/a><\/sup>Would be better to use wealth centiles in each country, but I can’t find consistent data across the OECD. If anyone can, please drop me a line<\/a>).<\/span> how much tax does the estate pay, as a % of estate value? <\/p>\n\n\n\n

In many countries, the tax result differs markedly depending on who inherits, so I’ll focus on children inheriting from two married parents (generally the scenario with the lowest tax).<\/p>\n\n\n\n

That gives us this:2<\/a><\/sup>Important caveats: this uses OECD data which covers the broad sweep of estate\/inheritance taxes but inevitably misses some of the detail. I manually added in the UK residence nil-rate bands… I didn’t go through other countries and investigate\/add in all of their quirks. So this may somewhat flatter the UK compared to other countries. The chart also only covers the scenarios where children inherit from a married couple. Other scenarios are hard to model given that many countries have forced heirship rules, where the children more-or-less always inherit.<\/span><\/p>\n\n\n\n

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Obvious conclusions:<\/p>\n\n\n\n