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Real Liberals (not the LibDems) Fighting for Liberalism

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Letter in the weekly Oxford Times today – Tackle the Wealth Gap

Sir – Now the UK is to be fully independent, we must tackle the wealth gap between the rich and the poor which was partly responsible for the Brexit decision. All political parties, whether left, right or centre, should address the question, which they have ignored for too long, of the quasi-feudal inequality of inheritance of capital wealth.

The EU will no longer be able to object on grounds of discrimination if all 25-year-old UK-born, rather than EU-born, UK citizens, in London, Glasgow or anywhere else, receive, as they should, a basic minimum UK Universal Inheritance, financed out of taxation on the giving and receiving of capital gifts, bequests and inheritance from the previous generation of UK tax payers.

This real, continuation, traditional UK Liberal Party policy must now be introduced as soon as possible, because in order to be fair to adjacent year groups of 25-year-old UK-born UK citizens, it can only be introduced gradually.

The Liberal Party proposal is that UK Universal Inheritance should start at a mere £1,000 and be increased annually by that amount for ten years or more up to about 10% of average wealth in the UK.

Inheritance Tax on giving and bequeathing would be reduced and renamed Capital Donor Tax, with significantly reduced exemptions and reliefs.

UK Universal Inheritance would then be financed, and clawed back from the more fortunate, by a new cross-referred progressive tax on cumulative lifetime receipt of unearned capital gifts and bequests, including the UK Universal Inheritance itself.

As things are, some inherit unearned billions, free of tax, during their lifetime, while all too many others never inherit any capital at all. Other political parties should stop inveighing against inequality or demanding greater equality of opportunity for all without even mentioning the positive redistribution in each new generation of vastly unequal unearned inherited wealth.

Dane Clouston
Oxfordshire Liberal Party
Member, Liberal Party National Executive Committee
Stadhampton