A new Organisation of Economic Cooperation and Development (OECD) report, to be released on May 11, provides a comparative assessment of inheritance taxation across OECD countries and explores the role that inheritance, estate and gift taxes could play in raising revenues, addressing inequalities and improving efficiency in the future.

"Wealth inequality has been persistently high and on the increase in many countries for decades. Wealthier households are reporting higher-value inheritances, a trend which is likely to persist as asset prices continue rising and the baby-boom generation ages," said the Paris-based organisation.

Longer life expectancies and wealth concentration among older age groups could further reinforce inequality, along with the added pressure on the economy from the COVID-19 crisis.

The 'Inheritance Taxation in OECD Countries' report explores the role that inheritance taxation could play in raising revenues, addressing inequalities and improving efficiency in OECD countries.

It provides a background on the distribution and evolution of household wealth and inheritances, assesses the case for and against inheritance taxation drawing on existing theoretical and empirical literature, and examines the design of inheritance, estate and gift taxes in OECD countries.

The report shows the commonalities and variation in the application and the design of these taxes across countries, and identifies a number of reform options that countries could consider to enhance the design and functioning of inheritance, estate, and gift taxes.