On inheritance tax
April 15, 2015 1 Comment
At present inheritance tax is charged on estates worth more than £325,000 (£650,000 for couples). The Conservatives want to increase this to £1m for couples. This is another give-away for the rich.
There are some who would scrap inheritance tax altogether. I think it a very fair tax. Inheritance is unearned income, and since we must have taxation this would appear to be the least punitive or disincentivizing.
The bulk of many estates, as far as I can tell, lies in property.
The Land Registry House Price Index for February 2015 shows that the average house price in England and Wales is £180,252. For the East of England the average is £202,394, and for Southend-on-Sea it is £172,024.
The threshold at present is generous enough, given that for a single person it is still over 50% above average house prices. For a couple the current inheritance tax threshold is more than three times the average house price.
Raising the inheritance tax threshold will do nothing for average families in average homes. It is a give-away for those not content with having more than the rest of us, they also want to be taxed less on it.