The TPA has just been told by a high-level source that George Osborne will commit the Conservatives to abolishing inheritance tax in his speech at the Party Conference on Monday. This is great news. The TPA has long argued that inheritance tax is unfair, unpopular and unecessary and so we warmly welcome its abolition.
The plans as put forward by the Economic Competitiveness policy group and the Tax Reform Commission do envisage inheritance tax being replaced by a short-term capital gains tax, which would taper to zero after ten years and from which the main family home would be exempt. This does mean that some assets held for less than ten years will still face a tax on death, but according to the Tax Reform Commission, far less revenue would be raised under this system than from inheritance tax.
This is a huge step in the right direction and one that has our support. TPA Chief Executive Matthew Elliott said:
“Taxpayers across Britain will now look at David Cameron’s Conservatives in a different light following this announcement. Finally, voters can choose a party which will abolish this iniquitous tax. This is great news for ordinary families who suffer under the shadow of the death tax. Britain’s number one most hated tax is going to be axed.”