Darren Henry, Prospective Conservative MP for Wolverhampton North East, recently met a well known, local crossing control warden at Elston Hall, Pauline Biddulph aged 76. Who said ‘I will be voting Conservative on May 7th because it’s only the Conservative party who believe those who work hard and do the right thing must be rewarded. My husband Roy is now retired but worked hard all his life as an electrician so we could own our own home. We have a daughter so we welcome the Inheritance Tax concession.’
Darren added ‘That families who have worked hard, saved and put money into their house are caught by Inheritance Tax – a tax that should only really be paid by the rich. If you work hard, save and want to pass on your family home to your children – we are on your side.
The problem now is that almost a quarter of houses owned by individuals qualify for Inheritance Tax because they are worth more than the £325,000 threshold. However David Cameron announced this week, at the Conservative manifesto launch, that the Conservatives will take the family home out of Inheritance Tax by effectively increasing the threshold to £1 million.
We believe that only the rich should pay Inheritance Tax – but based on current forecasts, more than one in ten people (11.6 per cent) will be paying Inheritance Tax by the end of the next Parliament. Under this policy the proportion of people paying it will be reduced to around six per cent. That is still more than twice the proportion in Labour’s last year in office (2.5 per cent), and Inheritance Tax will still raise £5.4 billion.
Inheritance Tax was designed to tax the wealthiest in society. People who now pay this tax aren’t the super-rich. They’re ordinary hardworking taxpayers who’ve saved, done the right thing and just want to pass the family home on to their children.’