Tory plans to raise the inheritance tax (IHT) threshold to £2m are unlikely to happen should the party come to power at the next General Election, an adviser says.
Reports claim the Conservatives will double their original proposal of £1m for the threshold for married couples, who would be allowed a £1m allowance per person, transferable to the surviving partner after their death.
But adviser Alex Pegley, of Calculis, says IHT remains a “nice little earner” for any Government and recalls previous tax ‘pledges’.
“For my business model it [raising the IHT threshold to £2m] would be terrible! No, it would be great if it happened but I can’t see them doing it.
“It’s easy to make these statements when you’re not in power. I remember John Major when he was Chancellor saying the Tories would do away with IHT altogether.
“It’s a nice little earner for the Government and relatively painless for them to collect. Tax has got to come from somewhere.”
Pegley describes IHT as an “inequitable” tax. “The money has already been taxed once,” he says, “and that should be it.”
Opposition parties have voiced their concerns at the alleged proposals, dubbing them “tax cuts for millionaires”.
Yvette Cooper, chief secretary to the Treasury, told The Telegraph: “When hard working families are facing real pressure, how on Earth can the Tories justify more tax cuts for millionaires?
“David Cameron has clearly tried to hide this but now we know the Tories’ priority is to give money to a few thousand of the wealthiest estates in the country. How can this be fair?”
Details of the Tories’ plans for IHT came in a letter from Theresa May to Clive Scott-Hopkins, a retired financial adviser who had asked the shadow leader of the House of Commons about the Conservatives’ tax plans for married couples.
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