Author Topic: Inheritance Tax threshold fixed until at least 2019  (Read 4987 times)

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The Prophet

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Inheritance Tax threshold fixed until at least 2019
« on: February 25, 2013, 09:31:26 am »
In 2007, George Osborne announced that a Conservative government would raise the IHT threshold to £1million.
Despite this, the £325,000 threshold has remained unchanged since 2009.

Just eight weeks ago, Osborne again announced plans to increase the threshold in two years time. 
However his latest decision last week is now not to raise it again until at least 2019, potentially leaving thousands around £95,000 worse off.

In 2011, just 19,000 estates incurred inheritance tax, equating to just 3% of all deaths.
Freezing the threshold until 2019 will trap another 5,000, giving the treasury an additional £200million supposedly to pay for the new long-term care system "helping" 100,000 who would have otherwise had to pay for their care.

The very rich avoid inheritance tax altogether through careful tax planning.
Those who have saved and have modest assets bought with taxed income, should not be taxed again on death.
Parents should be able to help their children have a better life.