In a proposed fiscal reform, the government planned to introduce a cap on tax-free inherited private pension pots, meaning any inherited retirement assets valued at more than £120,000 would be subject to standard income tax rates for the beneficiary. The expected effect of this measure is to limit the quantity of accumulated financial assets passed down to younger generations.
Which of the following would be affected by this in the long run?
Both income and wealth inequality
Income inequality only
Neither income nor wealth inequality
Wealth inequality only
