A Brief History...... Progress since 1996 - and since 1797 before that

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2006 - February 9. On David Dimbleby's special Liberal Democratic Party leadership candidates BBC TV Question Time programme Dane Clouston questioned the three candidates on the subject of the wider distribution of wealth - as opposed to income - and the need to tax inherited wealth on what is received rather than what is given or left - part of the British Universal Inheritance proposal.

2006 - January 25. In a question from the audience on Jonathan Dimbleby's special Liberal Democratic Party leadership candidates BBC Radio4 Any Questions programme, Dane Clouston mentioned British Universal Inheritance as being the policy of the original and continuing Liberal Party (not the Lib Dems) and that it is a proposal to redistribute wealth at the only point at which it is practical - at the point of transfer from each generation to the next.

In answer to Jonathan Dimbleby's enquiry as to whether the rate of inheritance tax would go up, it was made clear that the rate would drop, all the scandalous exemptions would be abolished and the proceeds used to give every [British-born citizen] £10,000 [at 25 or as an allowance against inheritance tax payable]..

2006 - December 23rd. The Daily Telegraph Headline. Following the election of David Cameron as Leader of the Conservative Party, Oliver Letwin, former Shadow Chancellor of the Exchequer and now Director of Policy for the Conservative Party, announces in a Daily Telegraph headline: "We will redistribute wealth" and went on to talk of empowering people. It is difficult to see how this could be done without British Universal Inheritance.

2005. British Universal Inheritance, a 4000 word article by Dane Clouston, published in the Vol 13 No 4 2005 issue of Renewal - The Journal of Labour politics. This will shortly be available via the Renewal website http://www.renewal.org.uk

2005 - October 1st. British Universal Inheritance adopted as party policy of the original and continuing Liberal Party (not the EU-fanatic Lib Dems) at the 120th Annual Liberal Party Assembly in Wolverhampton.

2005. British Universal Inheritance had previously, before the last General Election, "been identified for inclusion and discussion in the Conservative Party Review of Inheritance Tax", the results of which were not made public. It is seen as a big meritocratic idea, comparable with the Thatcherite sale of council houses, which will redistribute wealth and empower people.

2004 - September 6th. A letter published by the Financial Times

"FINANCIAL TIMES - LEADERS AND LETTERS

Monday September 6 2004

Reforms that would really alter our inheritance

From Mr Dane Clouston

Sir, Peter M. Smith (Letters, September 1) asks: "Why not just put 1p on the top rate of income tax and scrap the whole complex mess" of inheritance tax? Eureka! Continue to tax income that is earned and capital gains that are created or made up to 40 per cent - or 41 per cent if Mr Smith has his way - and allow all receipts of wealth that the recipients have done nothing to earn, save or make to be received tax free.

The rich are getting more rich than the poor year by year. We should do nothing about it, should we? All that talk of greater equality of opportunity is so much eyewash. Who cares that some people start off their lives with £billions and others with nothing? Who cares about financial and social exclusion? Never mind the alienation that comes with it.

Never mind all the houses that will be owned by the rich and rented by the poor. Democracy will live for ever, as the country becomes ever more unequal, with the rich living behind gated communities, and the poor shut outside. Just be tough enough with policing and keep the lid on the kettle of illegitimate aspirations.

But there is an alternative way to look at that 1p on the top rate of income tax, which is raise revenue so as to stop taxing capital to cover current expenditure.

Then reform the taxation of inheritance by lowering the starting rate of a progressive tax to 10 per cent for most beneficiaries, and linking it to amounts received instead of to types of assets left and gifts made.

Abolish exemptions except between husbands, partners and wives. Use the vastly increased proceeds of such a Capital Gifts and Inheritance Receipts Tax to broadly finance a £10,000 British universal inheritance, itself subject to the 10 per cent tax and so equivalent to a £90,000 exemption for those inheriting more than that from other sources, for all young UK-born men and women on their 25th birthday. (The average wealth of all adults and children in UK at the end of 2002 was £85,000 according to the Office of National Statistics).

Now that would make a difference to equality of opportunity, and alienation, home ownership, entrepreneurial activity, policing costs, welfare state dependency, etc. That could even incorporate the ridiculous Baby Bonds, clawing them back in tax from inheritance billionaires rather than needlessly adding to their fortunes.

By redistributing in this way the ownership of the stock of capital at the point of transfer from each generation to the next, it will be possible to reduce the rate of taxation on the flow of income and expenditure within each generation by considerably more than the equivalent of 1p on the top rate of income tax [if Mr. Smith's figure is right] of the £2.5 billion take from the present exemption-riddled 40 per cent inheritance tax.

DANE CLOUSTON

Director, OPPORTUNITY - Campaign for British Universal Inheritance,

Oxford OX44 7AT "

March 18, 2003. Letter published in The Times, as one of three letters under the heading, How we measure and fight poverty

From Mr. Dane Clouston

Sir, Anthony Browne writes in today's Times of the desirability of the judicious redistribution of wealth "to create a cohesive and fair society".

Redistribution, yes. Halve the rate of the present estate duty-type inheritance tax from 40 per cent to 20 per cent [since 10 per cent]. Introduce in tandem with it a new progressive tax, starting at 20 per cent[since 10 per cent], on all inheritance and capital gifts received. Eliminate all 0 per cent exemptions between one generation and the next. Avoid double taxation by transferable tax credits.

Use the increased proceeds to give every British-born young adult a £5,000 [since £10,000] "British Universal Inheritance", itself subject to the 20 per cent [since 10 per cent] tax, on her or his 25th birthday. Being broadly self-financing, the cost will be merely the £2 billion [in 2006, £2.5 to £3 billion] revenue foregone from the existing, exemption-ridden 40 per cent inheritance tax. The amount and rates of tax would be subject to democratic debate and would change over the years.

Such a redistribution would drive the economy forward. It would also help to bring about more equality of opportunity, home ownership and sense of community, with less poverty, social exclusion and welfare state dependency. By redistributing the stock of inherited capital in each new generation, it would be possible to lower taxes on the flow of income and expenditure.

Yours sincerely,
DANE CLOUSTON (Director, Campaign for Universal inheritance)
March 14

2003 - March 14. Anthony Browne, as the Thunderer, writes in the Times "I firmly believe that redistribution of wealth is required to create a cohesive and fair society. But redistribution of wealth to the extent that it kills off incentives to create wealth is self-defeating. The sad fact is that capitalism is the only economic system that actually works, and inequalities are essential to the functioning of capitalism: rewarding everyone the same undermines the grubby but essential incentives that drive the economy forward".

2003 - February/March. This web site established. All 640 MPs contacted individually by e-mail or by letter with advice of the address of the web site and an invitation to look at it.

2003. January. Universal Inheritance recognised, with help from the language and structure of the Landmark Forum (see http://www.landmarkeducation.com), as no longer just an evolutionary rather than a revolutionary idea, but also as a possibility for the transformation of open democratic capitalist countries in response to widespread persistent complaints about insufficient equality of opportunity together with the pretence that equality of opportunity and the distribution of inherited wealth are not related.

2002. Wider lobbying recommences.

2001. Letter from the Director, Campaign for Universal Inheritance, published in The Times on February 13th in response to a letter declaring that a Conservative government would exempt from tax all income from capital on the grounds that all capital has already been taxed. The letter argued that all inheritance and capital gifts should be taxed, which it absolutely is not at present - given the huge exemptions from Inheritance Tax - and that the proceeds should be used to finance Universal Inheritance for all at 25.

The Campaign lobbies selected Conservative politicians before the General Election. Universal Inheritance could have helped, and could still help, a radical, democratic Euro-realist Conservative Party with vision.

The Campaign also responds to the Treasury Consultation Paper on the Baby Bond proposal.

2000. Socialist Fabian society proposes Universal Inheritance under the title "A Capital idea"(4). They suggest £10,000 at 18 (too young) financed by inheritance tax at a tax rate starting at 20 to 25%. One of the authors claims originality ten years ago and they point out - a revelation - Tom Paine's original 1797 idea!

1999. Campaign lobbies Tony Blair, Gordon Brown, William Hague, Charles Kennedy and others

1998. "Universal Inheritance"(3) published privately, suggesting £5,000 - capital for all - at 25 in democratic capitalist countries (comparable in democratic countries with Universal Suffrage - or votes for all - at 18) financed by a progressive tax on cumulative lifetime receipts of inheritance and capital gifts, including the Universal Inheritance itself, starting at 20%

1996. Campaign for Universal Inheritance conceived

1979. Idea of "Inheritance for All" included in the Liberal Party Parliamentary By-Election Address in the South West Herts By-Election

1976. "Inheritance for All"(2) published in the March 1976 issue of New Outlook

1974. Dane Clouston stood as Liberal Parliamentary Candiate for Newbury in February and October, either side of his Politics, Philosophy and Economics finals in June, on the platform of (versus Labour at the time) "privatisation of all activites except those which either cannot or ought not to be rationed by price" and of (versus Conservatives) "a far fairer country, with greater equality of opportunity in education, health and the inheritance of wealth". October 1974 result: Conservative 24,000, Liberal 23,000, Labour 10,000. So voters approved

1972. Dane Clouston re-invents, without prior knowledge, "Inheritance for All" - incorporating the sale of council houses in a way that would have been fair to all - while Prospective Liberal Parliamentary Candidate for Newbury and a mature undergraduate at New College, Oxford, reading Politics, Philosophy and Economics - in a speech to the Liberal Party assembly in Edinburgh

1797. Tom Paine, author of "Common Sense" and "The Rights of Man" suggests that every citizen should receive £15 at the age of 21(1). See http://www.tompainelewes.org.uk

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(1) Tom Paine, Agrarian Justice - (1797)
(2) Dane Clouston, New Outlook, Inheritance for All - (March 1976)
(3) Dane Clouston, Campaign for Universal Inheritance, Universal Inheritance - (1998)
(4) David Nissan and Julian Le Grand, Fabian Society Policy Report 49, A Capital Idea - (2000)