Two polls over the weekend showed that the Conservative plans to raise the inheritance tax threshold to £1 million are popular with voters:
- YouGov for The Sunday Times found that 66% of voters thought the £1m threshold for IHT was a good policy. Only 18% thought it a bad policy.
- BPIX for the Mail on Sunday found that 71% supported "the Tory plan to cut inheritance tax". Only 17% opposed it.
And here's one reason why. An analysis by the Financial Times today shows that at least a quarter, and possibly as many as two in five, of families in marginal seats are theoretically liable to pay inheritance tax. So much for Ed Balls' argument that only 7 per cent of estates pay the levy.
It's also reassuring to hear that Gordon Brown is also planning to look again at inheritance tax, and could raise the threshold and/or reduce the rate. A tax-cutting competition between politicians is exactly what taxpayers need. We hope it will lead to a cut in the overall burden of tax, bringing genuine relief to hard-pressed families and businesses.