In his speech to the Conservative Party Conference, Shadow Chancellor George Osborne pledged to reduce two taxes:
1. The threshold for inheritance tax would be increased from around £300,000 to £1 million.
2. The stamp duty threshold for first time buyers would be increased from £125,000 to £250,000.
This is great news for millions of ordinary families, who will no longer have to worry about the burden of inheritance tax at a time when they are grieving over deceased relatives. It is also great news for up to a million first-time buyers.
The TaxPayers' Alliance has been saying repeatedly that inheritance tax is unfair, unpopular and unecessary. Polls show that it is one of the most hated taxes in Britain. It is very positive that politicians are finally listening.
Unfortunately, these two tax cuts will be paid for by a flat £25,000 levy on all people who register as non-domiciled for tax purposes, meaning that the overall burden of taxation will remain the same. We hope that the Conservative Party recognises the urgent need to bring the overall tax burden down.
Matthew Elliott, Chief Executive of the TaxPayers' Alliance, said: "It's great news that ordinary families will no longer have to pay inheritance tax and that young couples will be exempted from stamp duty when they buy their first home. This is a victory for all those who have campaigned against the unfair inheritance tax. It's been a long and sometimes lonely battle, but we are now starting to see genuine results."