Press reports suggest that prime minister David Cameron has revived the Conservative pledge to raise the inheritance tax threshold to £1m. Mark Pearce, partner at law firm Thomas Eggar, comments: ‘Reform is needed to the current inheritance tax system.
Press reports suggest that prime minister David Cameron has revived the Conservative pledge to raise the inheritance tax threshold to £1m. Mark Pearce, partner at law firm Thomas Eggar, comments: ‘Reform is needed to the current inheritance tax system. As with many taxes, what started as a tax on the wealthy has now become a tax that the average family must consider and plan for. It is particularly problematic for unmarried individuals who must pay 40% even when leaving assets to close family.
‘For most people, their most valuable asset is often the family home and families are often left with no option but to sell the family home on death in order to meet the tax demand. A simple solution, which could be implemented now, would be to take the main home outside of inheritance tax. A similar exemption already exists for capital gains tax, so aligning the taxes should not be difficult and would be far more palatable to the hard-working families that Cameron is targeting, rather than a vague promise to do something after the next election.’
Press reports suggest that prime minister David Cameron has revived the Conservative pledge to raise the inheritance tax threshold to £1m. Mark Pearce, partner at law firm Thomas Eggar, comments: ‘Reform is needed to the current inheritance tax system.
Press reports suggest that prime minister David Cameron has revived the Conservative pledge to raise the inheritance tax threshold to £1m. Mark Pearce, partner at law firm Thomas Eggar, comments: ‘Reform is needed to the current inheritance tax system. As with many taxes, what started as a tax on the wealthy has now become a tax that the average family must consider and plan for. It is particularly problematic for unmarried individuals who must pay 40% even when leaving assets to close family.
‘For most people, their most valuable asset is often the family home and families are often left with no option but to sell the family home on death in order to meet the tax demand. A simple solution, which could be implemented now, would be to take the main home outside of inheritance tax. A similar exemption already exists for capital gains tax, so aligning the taxes should not be difficult and would be far more palatable to the hard-working families that Cameron is targeting, rather than a vague promise to do something after the next election.’
