View more on these topics

Tories pledge to triple IHT threshold

The Conservatives have pledged £3bn in tax cuts to more than triple the inheritance tax threshold to £1m and double the stamp duty threshold to £250,000 for first-time buyers, with both policies being paid for by a £25,000 annual flat tax on non-domiciles.

The present IHT threshold is £300,000 and for stamp duty it is £125,000.

At the Tory conference in Blackpool on Monday, Sha-dow Chancellor George Osborne said the two moves represent the “most important reform of capital taxes for a generation”.

The Conservatives say the move on stamp duty will mean 90 per cent of first-time buyers will not pay any stamp duty, with a cost to the tax-payer of £400m.

Osborne said the IHT commitment would cost £3.1bn while the levy move on non-domiciled residents would raise £3.5bn on a conservative estimate that 150,000 people would pay the levy.

The Government has attacked the plans, saying the Tories have got their sums wrong about non-domiciled status, claiming that the levy would only raise £650m a year as many non-doms would not pay it.

A Skandia spokesman says the firm supports a rise in the IHT threshold but the Conservative plans involve a shift from tax revenue that the Government is certain of to revenue that they cannot be sure they can collect.

But the Tories have hit back, stating that consultancy Grant Thornton and the Confederation of British Industry believe the majority of non-doms do not see £25,000 as a significant sum and would be willing to pay it as a way of clarifying their position and removing uncertainty.

The Conservatives have also rejected suggestions from the Treasury that the plan would create problems for US citi-zens with their American tax arrangements.

Osborne said: “Brown told you he would look after your pension then he launched his £100bn raid on savers. The nation’s bank manager who cost us all £2.5bn by selling our gold at a record low, when it has now reached a record high. Gordon Brown, the nation’s bank manger. Let’s start queuing round the corner to close our account.”


Advisers rate Falcon and M&E top of networks

Falcon and M&E are neck and neck for top spot in this year’s Henry Samuels Marketing Services ratings of IFA networks.Market research expert Samuels says the overall findings, based on responses from 300 IFAs, indicate there is still trust in networks, despite continuing suggestions that the traditional network model is dead.Falcon and M&E have increased […]

Over half of IFAs do not understand personal accounts

Only 9 per cent of IFAs believe that personal accounts are a positive move for the financial services market according to research from The Pensions Report 2007.The report, produced in partnership with TaxBriefs, has also revealed that 56 per cent of IFAs do not have a good understanding of the government’s proposed personal accounts scheme.Furthermore, […]

NU shock move for £260m London sell-off

The £4.2bn Norwich Union property trust’s decision to put two flagship London office buildings on the market has surprised the City.NPT is marketing an office block at 10 Queen’s Street Place, which is yielding 5 per cent, for £180m and 16 Old Bailey, on a yield of 4.25 per cent, for £81m.The two sales comprise […]

Creating opportunity out of change

By Denise Wond, marketing manager The buy-to-let market has recently been the subject of a raft of tax changes, all of which make it a less profitable and less appealing proposition for investors. In response, we’ve seen a dip in demand for BTL mortgages and that’s bad news for many advisers who will now be looking […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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