FILE PHOTO: Britain's shadow Chancellor of the Exchequer John McDonnell speaks at a Momentum 'The World Transformed' event during during the annual Labour Party Conference in Liverpool, Britain, September 25, 2018. REUTERS/Hannah McKay

LONDON (Reuters) - Britain’s opposition Labour Party is interested in a plan to replace inheritance tax with a lifetime tax on all gifts from parents to their children over a certain threshold, its finance chief John McDonnell said on Sunday.

Media reports have suggested Labour could introduce a new lifetime tax on all gifts above 125,000 pounds ($158,662).

“We’re looking at it,” McDonnell told Sky News.

“I think it is interesting, we need to have a fairer system of how we can ensure that wealth is more fairly distributed. That is one idea.”