WAY Group chairman Paul Wilcox says the Tories' backtracking on inheritance tax policy is understandable given the UK's economic deterioration.
Wilcox's comments come as former Chancellor Ken Clarke recently backtracked on an incoming Tory government's priority to cut inheritance tax.
"It is clear from Clarke's succession of contradictory announcements that my earlier suspicions that George Osborne's original intention of moving to a £1 million NRB were effectively scuppered by Chancellor Darling's inspired move to make the NRB transferable," says Wilcox.
Wilcox expects the Tories to either increase the personal nil rate band (NRB) to £500,000 and retain the new transferability rules to give every couple a joint allowance of the promised £1m, or increase the personal NRB to £1m and remove transferability.
He says: "With asset values well down, inflation about to turn into deflation and unemployment forecast to hit 3 million in the coming year, the public will feel there is little justification at this moment for taking the wealthy out of any form of taxation."Investment Week
What made financial headlines over the weekend?
Q2 net sales dropped almost 50%
‘Important to have an anchor’
Lack of innovation for solutions