Homeowners with properties worth up to 1million going to be able to pass them on to their children ‘taxfree’ under plans drawn up by George Osborne, it was claimed last night.
Shall not be included in tomorrow’s Budget after it was blocked by the Liberal Democrats, the Chancellor’s proposal is expected to become a key Tory part manifesto.
Were vetoed as Coalition part deal in 2010, plans to raise the inheritance threshold to 1million were included in the party’s manifesto at the last election. Scroll down for video
According to Treasury papers leaked to The Guardian, the proposed measures would also reduce the inheritance tax bill on properties worth up to 2million by 140000.
The tax break, which would mean just over 20000 fewer estates would annually have any inheritance liability, is expected to cost nearly 1billion.
In the papers, the officials note that the move ‘will generally be very popular with the public and in the media. It will allow you to say you are exempting those with modest homes from inheritance tax exempted in certain circumstances.
The document, prepared for Treasury financial secretary David Gauke. Having considered a substantial cost increase in the existing nil rate band, you and the Chancellor have indicated you would like instead to introduce a more targeted measure to allow the family home to be passed onto the children of deceased without it leading to an inheritance tax liability. Also, you have indicated a desire to reduce inheritance burden tax.
They are desperate. It is won’t be included in tomorrow’s Budget after it was blocked by the Lib Dems A senior Tory source blamed the leak of ‘old advice’ on the Lib Dems, adding, george Osborne’s proposal is expected to become a key Tory part manifesto. Essentially, there is nothing in the Budget on inheritance tax, which we have said repeatedly is an election issue.
Another senior Conservative added. This is a leak of what’s not in the Budget. It is thought that the Lib Dems leaked the Budget papers ahead in a bid to paint to Tories as party of the rich the party. At this time we get leaks of what’s in the Budget.
People number who own a home worth more than 1million has risen dramatically, up 50 per cent since before the financial crash.
Zoopla last year predicted that there would be 500000 people owning a seven figure property by 2015.
There are big rises in the south east and the south west, with smaller increases in Wales and Yorkshire, while most are in London. I repeat myself; we have paid Taxes on our assets and why should we pay again; it’s all about preventing the ordinary person becoming rich and better off; keep a nation very poor and you can control them; I would not mind so much if they spent out taxes sensibly; they never do and this Inheritance Tax should be abolished; pay tax twice; not bloody lightly mate; spend it all 39000 a year benefits; so folks get spending the state will keep us all, Yesterday I listened to the Lib Dem Mr Vince Cable spouting out that those who are well off should expect to pay Inheritance Tax. Happy Days.
a with more and more people forced to stay in the family home it is cruel to take the house away due to an unrealistic threshold, as it stands it’s daylight robbery.
Screw Clegg. Take it all away and see what he says then! Do it. Good, inheritance tax has not kept pace with house prices in many areas and needs to be increased.