View more on these topics

Tory proposal to up IHT threshold to £1m is unrealistic says Skandia

The Conservative’s proposal to increase the inheritance tax threshold to £1m is aimed at “grabbing headlines and winning votes” according to Skandia.

Skandia believes the IHT threshold, which currently sits at £300,000, should be increased to keep up with the rise in house prices but claims £1m is unrealistically high.

Skandia head of tax and financial planning Colin Jelley says the revised limit must be affordable given the nation’s current economic situation and questions whether the Conservatives will realistically be able to raise enough money to pay for this tax cut by charging non-domicile UK residents a flat rate of £25,000 per year.

He says: “The Conservatives have proposed a new tax designed to replace the revenue lost by the very significant increase in the IHT threshold but they are taking a gamble with this proposal. The current inheritance tax take for the Government is certain and steadily increasing. George Osborne is proposing to swap this certainty of income for a new tax that is unproven.

“We strongly support raising the IHT threshold but it must be affordable. As always the devil is in the detail and until we see this it is very difficult to know how effective this new tax might be.”


Crunch time

The more observant among you might have guessed I was away last week.

The truth will out

Lord Lipsey’s admission that many pension and endowment policyholders may have been wrongly compensated will come as little surprise to advisers, who have paid the price of ‘false memory syndrome’. By John Lappin

Preferred writes to packagers to clarify which criteria will apply to re-offer cases

Preferred has written to packagers and brokers to clarify its policy regarding which product range and criteria will apply to cases requiring re-offer after the October 5 cut-off date.This is in relation to its recent communication announcing new product launches on its core range from October 3 and its shared ownership range on October 10.It […]

Is property set to subside?

Brick and mortar have held up well but cracks have been appearing in funds invested in property shares, says James Phillips


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