Cameron abandons inheritance tax pledge
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Ministers are to abandon the Conservative Party’s flagship pledge to reform Britain’s “unfair” inheritance tax system in a move that will hit four million middle-class Britons.
George Osborne, the Chancellor, will announce that the level at which inheritance tax becomes payable will be frozen at £325,000 until at least 2019 to fund reform of the social care system. The decision will mean that the owners of an average home across much of southern Britain and large areas elsewhere will be liable for inheritance tax. Critics said it was effectively a “double tax” as it was a levy on assets already raided by the taxman and accused the Treasury of “picking people’s pockets”.
Before the election, the Conservatives had pledged to increase the inheritance tax limit to £1 million – with both Mr Osborne and David Cameron saying that the right to pass on untaxed assets was a “most basic human instinct”. Just eight weeks ago, the Chancellor had announced modest increases in the inheritance tax threshold before the next election, but these will now also be abandoned.
The announcement that the threshold will be frozen effectively means that Mr Cameron and Mr Osborne have abandoned their flagship policy, which cannot now be introduced for at least 13 years after it was pledged.
http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9861439/David-Cameron-abandons-inheritance-tax-pledge.html
U turn, back track, change of mind or just lying to get in to power?
Can we believe anything they say anymore?
George Osborne, the Chancellor, will announce that the level at which inheritance tax becomes payable will be frozen at £325,000 until at least 2019 to fund reform of the social care system. The decision will mean that the owners of an average home across much of southern Britain and large areas elsewhere will be liable for inheritance tax. Critics said it was effectively a “double tax” as it was a levy on assets already raided by the taxman and accused the Treasury of “picking people’s pockets”.
Before the election, the Conservatives had pledged to increase the inheritance tax limit to £1 million – with both Mr Osborne and David Cameron saying that the right to pass on untaxed assets was a “most basic human instinct”. Just eight weeks ago, the Chancellor had announced modest increases in the inheritance tax threshold before the next election, but these will now also be abandoned.
The announcement that the threshold will be frozen effectively means that Mr Cameron and Mr Osborne have abandoned their flagship policy, which cannot now be introduced for at least 13 years after it was pledged.
http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9861439/David-Cameron-abandons-inheritance-tax-pledge.html
U turn, back track, change of mind or just lying to get in to power?
Can we believe anything they say anymore?
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Comments
give your stuff away, and live for 7 years.
no IHT.
this government has made so many u turns i don't think they know if they are coming of going
the hell we are
This prime minister does more turns than a rollercoaster a marry-go-round and the waltzers put together.
he wouldn't be able to straighten-up-and-fly-right. if his life depended upon it. The trouble is its other peoples lives he messes with.:eek:
Seriously!
The news reader on the local radio the other day announced "the latest U turn by this government" !!!
They bang on about referendum this and referendum that! Why can't we have a referendum about whether to keep them in power.
I agree that it's not ideal that a person can't hand over 100% of their assets after they die - but we don't live in an ideal world. In the league table of unfair taxes I'd say that IHT sits a long way down the list.
IMO this is just another example of people in the media increasing opposition to taxes which they have to pay themselves.
How is he messing with lives when he doesn't do things that people don't want him to?
Surely this announcement, that money is going to be spent on social care rather than a "tax cut for millionaires, should be welcome. Even Andy Burnham in the Commons has welcomed the general principle of the new proposals.
nice one
yeah, he dosen't care who gets hurt in the process
Typical Leftie barrel scraping IMO
http://www.theweek.co.uk/politics/51455/inheritance-tax-have-tories-betrayed-their-base
and in 2009 senior Tories said they were going to do it after Ken Clarke said it was only an aspiration
You mean typical lefties like the Telegraph?
http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9861439/David-Cameron-abandons-inheritance-tax-pledge.html
.
You would have heard Hunt say that folk should then make financial provision in terms of insurance or pension plans in order to pay for it then.
Slippery slope?
& It hasn't been scrapped, it been delayed .
Reported in the Telegraph and posted here to discuss.
What are your thoughts on the number of u turns, mind changing, re-thinks and carefully chosen wording...(in/out referendum)?
I was referring to the usual lefty posters replies on here.
So the Telegraph agrees with the lefty posters on this one, or do you have some spin to say it's not a U-turn and abandonment of a pledge almost as major as the Lib Dems with the students?
Is that a pre prepared reply?
Because what this means is that the wealthiest estates will end up paying more inheritance tax as the threshold is frozen. Of course the care cap also helps the wealthiest - as at present there is no limit to your care costs if you have multiple homes/cash running into the millions whereas from now on it gets capped.
I have never really got the British obsession with inheritance tax being a bad thing. Surely its better for elderly people to pay less tax/lower care charges when they are alive - than when they are dead.
The gainers are the people who worked/earned the money (retired people paying less tax/care charges) - the losers are their children (generally in their 60s - so no longer kids!) who receive a smaller legacy out of assets/money that was never theirs.
But then its amazing how many people get terribly angry about the taxes 'they' will pay once they are six feet under!:D
I think they're great
A government that actually listens.
Didn't agree with the U-turn on the hot/cold food .tax though.
I thought we should be against big companies like Greggs, Asda etc. avoiding tax on a technicality.
So the 2010 manifesto was a manifesto for the 2015 election
The Lefties should be supporting it, but as it's the Tories doing it they are the now siding with the Mail/Telegraph readers to attack it.
Their stupidity is laughable.
The LibDems allowed a vote though in direct opposition to their pledge,The Tories are just delaying theirs.
In defence of both of them, neither won the election so are limited in what parts of their manifesto they can implement.
Another fact the Left cannot seem to understand
What part of COALITION GOVERNMENT don't you understand