Conservatives consider inheritance tax shake up
Oliver Letwin, the Conservative Party’s treasury spokesman, has confirmed he is considering proposals to shake up the inheritance tax system.
Though the party are refusing to specify any tax cuts at this stage – citing uncertainty at the financial position a victorious party would find itself in – the strong hint is that the next general election manifesto may contain tax cutting proposals.
Specifically under consideration is the inheritance tax threshold (currently £263,000), which the Conservatives argue has failed to keep pace with rising house prices.
It claims that “thousands of hard-working families are now being swept into the inheritance tax net”, including many with council homes purchased under the 1980s right to buy scheme. According to Conservative Party figures, 86 towns now have an average house price above the tax threshold, up from one in 1997.
Speaking this morning, Shadow Chancellor Oliver Letwin said: “Inheritance tax has become plain unfair. Once only the very rich paid it, but under Gordon Brown it is hitting ordinary families all over Britain.
“Two and a half million houses with six million people living in them are potentially liable to inheritance tax and the number is rising rapidly. Even former council houses are being drawn into the net. This problem needs to be remedied.”
Reiterating the Conservatives refusal to make specific promises, which has drawn criticism from opposition politicians, Mr Letwin’s deputy, George Osborne, said: “It would be irresponsible to give it now. When we have done our sums, when we have seen what Gordon Brown has left us in terms of the state of the economy, then we will see what can be done. But people should be in no doubt that we want to cut taxes.”
