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LibDems say Tory tax plans would cost £7bn

The Liberal Democrats have hit out at Tory proposals to cut inheritance tax and stamp duty, saying it will result in a £7bn shortfall.

At the Conservative Party conference last year, Shadow Chancellor George Osborne said that under a Tory government, the threshold for inheritance tax would rise from £300,000 to £1m.

He said that stamp duty for first-time buyers on homes worth up to £250,000 would be scrapped and the cut would be paid for by taxing non-domiciliaries.

But the LibDems say the proposed tax on non-doms would fall nearly £7bn short of covering the cost of the inheritance tax and stamp duty cuts between 2010 and 2015.

Shadow Chancellor Vince Cable says: “It is unbelievable that the Tories are still planning to cut taxes for a hand- ful of millionaires when the majority of people across the country are feeling the squ- eeze. We need fair tax cuts that put money back in the pockets of ordinary people.

“The Conservative sums simply do not stack up and it is irresponsible and highly misleading for George Osborne to continue to pretend that they do.

“If Osborne and David Cam-eron cannot get these sim- ple sums right, how can they possibly be trusted to run the economy?”

Prudential tax and trusts manager Gerry Brown says: “Assuming that the Tories come into power in 2010, I would have thought that they would phase the inheritance tax change in over four or five years so whether that means there is a £7bn shortfall is hard to say because you need to look at all the other tax aspects that have been commented on and which might be changed.”

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