Inheritance tax: Radical overhaul of death levy demanded as Tories launch new push
55 Tory MPs are calling on PM Rishi Sunak to abolish inheritance tax in the Autumn Statement
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Tory MPs are demanding the Government abolish inheritance tax in the Autumn Statement later this year.
The Conservative Growth Group, led by allies of former Prime Minister Liz Truss, will this month publish a paper justifying why parents should have the freedom to pass their wealth onto their children without sacrificing their savings to the state.
The 55 Tories behind the campaign believe a move like this could provide much-needed support for the Conservatives, who are falling behind Labour by double-digits in the polls and lost more than 1,000 seats in May’s local elections.
Ranil Jayawardena, chairman of the Conservative Growth Group, told the Telegraph: “It’s a death tax. It’s also a double tax, because it’s a tax on money that has already been taxed. It’s not fair, it’s not Conservative and it’s not very British. It needs to go.”
The inheritance tax threshold has remained at £325,000 since 2010 and Chancellor Jeremy Hunt has now frozen it until 2028
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Inheritance tax is fast becoming a worry for middle-class homeowners and parents in Britain.
The threshold has remained at £325,000 since 2010 and Chancellor Jeremy Hunt has now frozen it until 2028.
The proportion of homes under threat from the levy has more than doubled since the Conservatives came to power.
Last year, almost 40 per cent of homes sold in England and Wales were worth more than the basic allowance.
Former chancellor Nadhim Zahawi described the death duty as “morally wrong”.
Writing in the Telegraph, Zahawi said: “Inheritance tax is that other spectre that haunts us alongside death.
“As well as being morally wrong to take someone’s assets on their death, it also creates all sorts of inefficient and damaging distortions in our personal finances, and the wider economy.”
Former business secretary and GB News presenter Jacob Rees Mogg said inheritance tax raised only a “modest amount” for the Treasury and should be scrapped.
He said: “Death duties are an inefficient form of taxation that is unfair and economically damaging. Unfair because it is a double tax on already taxed assets.
Former home secretary, Priti Patel also described the inheritance tax system as both “regressive and punitive”.
Former chancellor Nadhim Zahawi described the death duty as “morally wrong”
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She said: “People should be in control of their income and have the ability to determine the future of the assets they have worked hard to save and build up during their lifetime.
“Substantial long term reform is required and I would encourage proactive steps to support hard pressed families across our country.”
A Treasury spokesman said: "More than 93 per cent of estates aren't expected to pay any inheritance tax in the coming years - however the tax still raises more than £7billion a year to help fund public services like the NHS and schools.
"Estates of surviving spouses and civil partners can pass on up to £1 million without an inheritance tax liability - significantly more than the average UK home of £285,000."
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