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Ukip wants to scrap inheritance tax

Ukip is promising to scrap inheritance tax as it proposes a 5 per cent VAT increase on luxury goods.

Delivering his keynote speech on the economy at its annual conference in Doncaster today, Ukip economic spokesman and MEP Patrick O’Flynn said the super-rich don’t pay inheritance tax anyway.

He said: “Let me tell you what Ukip wants to do to inheritance tax; scrap it altogether.

“Doctrinaire socialists look at death duties from the wrong end of the telescope. Instead of being envious of those who inherit, our primary response should be to respect those who earned the money, paid tax on it, invested it wisely and wish to pass it on to their chosen heirs.

“Envy at the good fortune of those heirs should never be used as a justification for depriving property owners of this basic right to pass on the wealth they have created. Tax was already paid on this money in life, it should not be levied in death as well.”

O’Flynn also said the party would launch a Treasury Commission to look at possible tax changes including a VAT increase from 20 per cent to 25 per cent on luxury goods.

O’Flynn said the new VAT band could have three simple thresholds such as £200 for a pair of shoes, £1,000 for a bag or £50,000 for a new car.

He also called for an end to non-EU foreign nationals being able to claim back VAT on shopping purchased in the UK.

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Comments

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

  1. As a member of the high end hi-fi buying fraternity (though nothing of late), I’m not too thrilled about the likelihood that such goods would almost certainly be classified as luxury items. Not a vote winner. It’s the sort of idea that Labour of the LibDems would come up with.

    And cutting or scrapping taxes in one area has to mean increases or withdrawals of reliefs in others, otherwise the books just won’t balance. Then again, cutting foreign aid to countries that patently don’t need it (or who simply mis-spend it ~ India’s space programme comes to mind) and withdrawing from the EU will probably help significantly, so the idea could fly.

  2. Perhaps we should remember the Conservative party’s pre-(last) election manifesto pledge that it would raise the IHT Nil Rate threshold to £1m. It still could.

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