The IPPR Commission’s “Plan for the New Economy“ report repeats the Resolution Foundation’s loopy call for all 25 year-olds to be given a cash handout of £10,000 each. This would, they say, cost £186 billion and come partly from a massive hike on inheritance tax. The government is over a trillion in debt, this would more than triple the deficit.

The IPPR’s new inheritance tax replacement would be a ‘lifetime gifts tax’ to get around the seven-year inheritance rule. How taxing all gifts between family members is in any way moral is anyone’s guess. The IPPR says vaguely that “gifts worth a small amount will be exempt”.  

If the IPPR’s proposal becomes policy when the parents stump up your deposit for a house as a wedding gift, that will now come with a tax bill. Grandma’s wedding ring for the bride? HMRC will send you a tax bill for that too.

Your first car from dad when you go to college? Annual road tax plus IPPR’s gift tax. If the grandparents help with your college fees or pay off your £50,000 of student debts when you graduate. John McDonnell will send you a tax bill on top of that…

The reason family gifts are exempt is because they are gifts, they are often a material expression of love. If John McDonnell wants to tax love…