Legal Updates

Conservatives ''not guaranteed'' to abolish inheritance tax

Date:  04 Aug 2008

Estate owners "would be mad" to delay inheritance planning in the hope that a new Conservative government would abolish the charge, it has been claimed.

According to financial consultant John Dallas, writing for the Scotsman, such a move is ill-advised not least because the main opposition party has "gone quiet" over the issue since the introduction of transferable nil-rate bands.

David Cameron has previously state that the abolition of inheritance tax is a long-term goal, although critics have questioned whether any government could compensate for an estimated revenue loss of £3.5 billion which would ensue.

However, Mr Dallas believes it would be reckless to assume, first that the Tories will win the next election and second that they will scrap what represents a significant guaranteed revenue stream.

He makes his position clear, stating: "The most important aspect of this process should be to seek legal and financial advice, as ensuring IHT efficiency is highly complex and challenging.

"Only time will tell what happens to IHT. However we must not expect a quick answer, as it may take several years, if at all, before we see any major strategic shift from the policy-makers in Downing Street, whichever party is in power."

"Efficient planning must start with ensuring you have current and effective wills," he believes.

At present, all assets over and above a £312,000 threshold are taxable at a rate of 40 per cent upon passage.

At Vizards Tweedie our specialists dealing on all matters of Inheritance Tax are Christine Green, Tony Millson and Judith Cuxson

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