The Conservative party has outlined its plans for inheritance tax and for those who claim non-domicile status.
In his speech to the Conservative Party Conference, Shadow Chancellor George Osborne said that he would promise to not tax the income of non-domiciles who register in the UK but instead would charge a flat annual levy of £25 000. He explained: “It is easy to administer, difficult to avoid and strike the right balance between a fair tax system and a competitive economy. Introducing this offshore levy covers the cost of abolishing stamp duty for 9 out of 10 first time buyers.” Osborne also trumpeted radical plans for inheritance ax. He said that inheritance tax had not fulfilled its original purpose – to hit the very rich – but now increasingly fell on the aspirations of ordinary people. To counteract this, Osborne announced that the next Conservative government would raise the Inheritance Tax threshold to £1m. He said: “That means we will take the family home out of inheritance tax. In a Conservative Britain, nine million families will benefit. You will not be penalised for wanting a better life for your children.”