View more on these topics

Tory group calls for IHT to be scrapped

The Conservatives’ Economic Competitiveness Group has called for inheritance tax to be scrapped on primary residences as well as urging cuts to stamp duty on shares.

The heavily trailed report, to be officially published today, recommends the abolition of IHT claiming it is increasingly hitting middle-income families.

The call to axe IHT echoes last year’s proposals from the Conservatives’ Independent Tax Commission, led by Michael Forsyth.

Shadow Chancellor George Osborne has welcomed the thrust of the report which also recommends cuts in corporation tax, mortgage deregulation, an end to forced annuitisation, a lifetime savings account and the ability for the UK Government to sidestep new EU regulations.

At the launch of the report today in London, Osborne said: “Inheritance tax was originally designed to target the very rich. But these days the very rich avoid it by hiring expensive tax advisers.

It is an increasing number of ordinary homeowners who are now hit by inheritance tax and that is unfair. So I will be looking very carefully at any proposals to ease the burden of this tax on these families.”

Chancellor Alistair Darling told BBC Radio 4’s Today Programme the proposals show the Tories lurching to the right and that IHT is paid by a very small percentage of the population.

The IHT threshold is currently £300,000 and will increase to £350,000 by 2010. Currently around 6 per cent of estates are hit by the tax.

Recommended

Grandads saving cash for kids

The Scottish Investment Trust says 36 per cent of grandfathers put money aside for their grandchildren compared with 29 per cent of grandmothers.

Pensions Office facing unfair dismissal claims

The Pensions Office director keith Popplewell could be facing claims for unfair dismissal from former employees who allege they were forced to quit because he cut their hours and closed the office.Last week, Money Marketing reported that The Pensions Office was apologising to introducers for delays in payment of commission after nine of the firm’s […]

DB Mortgages to increase sub-prime rates by 1 per cent

DB Mortgages says it will be increasing rates on its sub-prime products by 1 per cent when it relaunches its range on August 20.The lender says it will also be making changes to its near-prime range which sees it increase the rate of its full status product by 0.20 per cent and self-cert by 0.35 […]

Scottish Widows Bank launches key worker mortgage

Scottish Widows Bank has launched a new key worker mortgage as a rival to the Government’s own Open Market Homebuy scheme.The product will give key workers the opportunity to buy their own home outright, rather than just part owning it. It will also offer homebuyers the choice to buy with 102 per cent LTV, which […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    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