View more on these topics

David Cameron hints at raising IHT threshold

Prime Minister David Cameron says inheritance tax should only be paid by the “very wealthy” and hinted the threshold could rise after the next election.

Speaking at an Age UK question and answer session in London yesterday, The Guardian reports Cameron said the current £650,000 threshold for couples is not high enough.

Each individual gets a £325,000 tax-free allowance on inheritance tax which is transferable between couples.

The Conservatives pledged to raise the limit to £1m in their 2010 manifesto and Ukip has promised to abolish it altogether.

Cameron said: “To me inheritance tax is a tax that should be paid by the very wealthy. I think you should be able to pass a family home on to your children rather than leave it to the taxman.

“I would like to see that go further because I think even at £650,000, particularly in some parts of the country, you see someone who has worked hard, they have put money into their house, they have done it up to improve it and they want to leave it to their children and they don’t feel that they are in any way the mega-rich, and they feel: ‘I should be able to do that without having 40 per cent of it knocked off’.

“So I do still have ambitions to do that, but even though I’m the first Lord of the Treasury, there is somebody called the second Lord of the Treasury – that’s the Chancellor of the Exchequer, so I have got to try and shoehorn these things into his budget. He is a pretty co-operative chap, but I’ve got my work cut out on this one. But he is keen on it too.”

Last month, Chancellor George Osborne abolished the 55 per cent charge on pension funds payable on death.

Recommended

Justice-Fine-Ban-Court-Gavel-Judge-700x450.jpg
16

PosSol ordered to repay commissions for lack of ongoing service

Positive Solutions has become the latest firm forced to repay commission by the Financial Ombudsman Service for not providing ongoing advice. A FOS final decision from May ordered PosSol to repay commission after an adviser left the network and it did not continue offering advice. In August, HSBC had to repay trail commission in full […]

Barclays-HSBC-London-Canary-Wharf-2012-700x450.jpg

CII partners with BBA to improve trust in banking

The Chartered Insurance Institute has announced a working partnership with the British Bankers’ Association which aims to improve standards and trust in retail banking. The two bodies will deliver a series of initiatives for those in customer-facing roles within banks. They say a key focus will be meeting changing customer needs, particularly driven by the […]

Boardroom-Business-Finance-Corporate-Meeting-Hire-700x450.jpg

Gallagher UK retail chief exits after Oval deal

Peter Blanc, chief executive of Arthur J. Gallagher & Co’s UK retail division, has left the business. Arthur J. Gallagher & Co is the US parent of UK firm Gallagher Employee Benefits. Blanc joined the firm in April when Gallagher Employee Benefits acquired his business, commercial insurance broker Oval, for £199m. Arthur J. Gallagher International […]

Monkeys-See-No-Evil-Three-700x450.jpg

Wells Street Journal: Welcome to the first issue of Monkey Marketing

The Ukip conference can be a strange affair. Last year’s memorable event in Westminster saw former financial services spokesman Godfrey Bloom call a room full of women “sluts” and attack Channel 4 journalist Michael Crick with a rolled up magazine. This year’s gathering took place at Doncaster racecourse and with Nigel Farage putting a rocket […]

Rise of the machines

Head of Sustainable Investing at Royal London Asset Management, Mike Fox, looks at the case for including artificial intelligence within a sustainable investment strategy. Read the article in full here The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Interestingly the focus in this article is primary residence. All wider wealth looks like it will still take a battering!

  2. A simple measure would be to exclude from assessment for IHT the first £500,000 of the value of one’s private personal residence.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com