Stephen Timms MP Writes in the Telegraph

Who pays inheritance tax

SIR – The Conservative Party’s claim about the number of people who are liable to pay inheritance tax is ludicrous (report, December 29). As the Chancellor said at the pre-Budget report, less than three per cent of estates will pay inheritance tax. Just 16,000 estates were liable for inheritance tax in 2008-2009.

The Tories fail to take into account that in 2007, the Chancellor doubled the threshold above which estates became subject to inheritance tax for married couples and civil partners. If you’re a widow who wants to leave something to your children and grandchildren, you won’t just have your own allowance but that of your husband, too. In such a case, the effective threshold for paying inheritance tax is not £325,000 but £650,000, four times the average house price. We consider this to be fair.

David Cameron is proposing an effective limit of £2 million, 13 times the average house price. The Tory claim that only millionaires would pay inheritance under their plans is misleading. Estates worth up to £2 million would pay nothing, the equivalent of a £540,000 tax break.

Instead of misleading the public, Mr Cameron should explain why he is so intent on giving a tax cut worth £200,000 to the 3,000 richest estates in the country.

Stephen Timms MP
Financial Secretary to the Treasury
London SW1

Now, let me think about this for a second. As he is Labour and I would think a socialist, why is he not calling for 100% inheritance tax? This would allow them to return everything back to the people, and everyone would be equal. Hmmm, me thinks they don't have the guts to even talk about doing something like that.

Now, what is wrong with inheritance tax? We are talking about taking away money from a family who has suffered a loss. Telling them that after they have paid for the funeral, lawyers and all the other things required, then you have to give them everything over, whatever amount it gets set at.

Why is it really needed? Why not up some other tax and allow people to pass on everything to their family? That family is going to continue to pay tax, and in the long run they would pay more tax, on interest earned money spent with the winfall, etc.

Labour, not thinking about you, thinking about how to control you....