Aug 17 2007
A Conservative Party policy review group has advised its leaders to abolish inheritance tax if they win the next general election.
The economic competitiveness review group is led by John Redwood and has urged Tory leaders to do away with the tax that sees the government take 40 per cent of an individual's estate when they die if their assets are worth in excess of £300,000.
Under the proposals put forward by Mr Redwood, inheritance tax would be replaced by a reformed capital gains tax and he insists that the changes should only be introduced if they economic conditions are deemed appropriate.
Inheritance tax is unpopular among UK consumers and "this has become even more true as the swift rise of house prices in much of the country has resulted in many people suddenly finding that their family will be liable to pay quite substantial amounts upon their estate," Mr Redwood asserts.
According to figures released by the Office of National Statistics recently around 4.8 million people in the UK own property valued above the £300,000 threshold for inheritance tax liability.
