If it smells partisan, if it sounds partisan, then …
It probably is partisan.
Let’s look at the proposed exemption for “family homes” in the Chancellor’s proposals for “reforming” Inheritance tax.
- Does you estate qualify for inheritance tax – but you have a big home? You’re in luck – No Inheritance Tax
- Does your estate qualify for inheritance tax – but you life in a low property value area? Tough – you pay Inheritance Tax
- Does your estate qualify for inheritance tax – but you sold your home to pay for care? Tough – you pay Inheritance Tax
I cannot understand how a narrow “reform” of this nature can be justified (see Inheritance Tax and Family Homes). If the chancellor is in principle against Inhertance Tax, abolish it or raise the thresholds. If he is against how it impacts on “middle wealth” (!) (?) families, introduce a lower rate on say the first half million pounds.
Mr Cameron and Mr Osborne write: “As we promised in our manifesto, we’ll take the family home out of inheritance tax for all but the richest.”
They add: “It can only be right that when you’ve worked hard to own your own home, it will go to your family and not the taxman.”
BBC News Website (quoting an article in the Times) 4 July 2015 : Inheritance tax to be scrapped on homes worth up to £1m
“When you’ve worked hard to own your own home”
- How does this target the chancellor’s largess on those who have worked hard – rather than on those who have inherited wealth?
it will go to your family and not the taxman
- How does it target gifts to “your family” and not gifts to anyone else?