I’ve been to a couple of parties recently where the subject of 
inheritance tax has cropped up. Ageing parents are anguished at the thought of the Chancellor’s coffers reaping the rewards of their lifetime’s hard work and prudence because of the £300,000 inheritance tax threshold.
But concern over their future financial needs makes the elderly hold back from giving money away to their families, they are cautious and afraid of not being able to pay their own way. Should they have these worries, be placed in such an uncomfortable position?
Today’s announcement by Conservatives of a £1 million threshold plan will be hugely welcomed, it’s the voice of common sense and reason, of understanding and excellent judgement.
It should also be a huge relief for the two elderly sisters who are appealing to the European Court of Human Rights to win the same inheritance tax rights as married, gay and lesbian couples. Joyce and Sybil Burden, from Wiltshire, have lived together since birth but if one of them dies the other will face a large inheritance tax bill. They fear the one left will have to sell the family home to pay it.
Hopefully, that will no longer be the case.
Those sisters should not have to face those problems. Two lesbians living together have no problems. How ridiculous.
Ellee: At the risk of sounding like an “idealist”, what could be more moronic than a Death Tax, a Marriage Tax, or a Capital Gains Tax. I recently sat on a commercialflight with an engineer from Wales and to listen to his discussion of the level of taxes was mind boggling. A very timely post!
Hi Elle, I’ve often wondered that same point
A married couple, two men, two women or even two transvestites can claim married couple partnership for health insurance, pensions and inheritance tax … yet two sisters or two brothers can’t. Is that because they cannot get ‘married’ or become a ‘partnership’?
I like Cameron’s idea that only millionaires (the rich) will pay inheritance tax – what will that cost the treasury in pounds & pence?
God post Ellee. I have posted my own reactions. Generally any idea that stops the Government stealing from families when they suffer a bereavementis a good idea!
One problem is that with housing being so valuable far from rich people could have houses worth that much and get caught anyway. Especially in London I would think.
> Ageing parents are anguished at the thought of the Chancellor’s coffers reaping the rewards of their lifetime’s hard work and prudence
I have often pondered this. Is it really the result of hard work and prudence, or is it a “windfall” brought about by inflation? The value of my wee hoose in Cumbria has nearly tripled since I bought it in 2001 but it does not represent any hard work on my behalf, more of a windfall, I think. In other words, it’s unearned income.
Having said that I agree the present level should be adjusted accordingly to “catch” the same victims that it was originally intended to.
(Ooops, sorry, ended sentence with a preposition 🙁
There’s a little something waiting for you at my place but whether you like it or not is another matter, dear Ellee.
Sorry Maalie, I can’t agree with you. When death taxes were first introduced they were only meant to catch the VERY rich, not hard workimg individuals who have paid taxes all their life and who continue to be clobbered by Brown’s stealth taxes which have cost middle class families an extra £1,200 pounds in income tax and national insurance over the past 5 years….as well as the fuel increases (another fuel tax today at the pumps with more to come ), plus water and energy increases.
And, of course, our future old age which Brown has stolen with his raid on pensions.
Why should we not be allowed to pass something on to our children ??? With most of them not being able to afford their own house or a proper pension, their future looks very bleak.
Good for the Tories, I say…it is about time this lot stood up to Brown’s bully boy tatics and gave us all some hope for the future.
Mr. Osbourne deserves a pat on the back for his idea of taxing the rich foreign residents wishing to protect their offshore earnings from British tax. Most of them will only be too pleased to pay if it stops further investigations and hassle.
A 72 year old lifetime labour supporter (ex miner) who I lodge with, told me today that for the first time in his life, he would vote Tory if there were an election tomorrow.
Good for him !!!
Sounds interesting James, I wonder if I would like it ?
Stephen, thanks for the clarification.
I would vote Tory tomorrow if they promised to reverse all the post office closures that appear to be imminent. I hope my village won’t be affected, but I expect it will be.
Well, I saw this policy being announced on Sky last night and thought, “Here we go again – the Tories giving to those who already have.”
At last the Tories appear to be getting the message.
Sorry Limoncello, but a million quid just ain’t what it used to be. £300k certainly doesn’t equate to a substantial home in many parts of the UK now. There also needs to be redress between the lifestyle of those that don’t work and those that do. My own life (40 hour week of shifts) differs little from relatives who’ve chosen dependancy. I often ask myself at 4am scraping the frost off my car why I bother. I could spend the morning watching Sky on a widescreen if I could afford it – somehow many unemployed people I know find the funds to have these things, get fat and smoke. I really don’t know how they do it ?