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| Axe inheritance tax, Tories urged | Axe inheritance tax, Tories urged |
| (about 7 hours later) | |
| A Conservative government should abolish inheritance tax because it penalises too many middle-income families, a policy group recommends. | A Conservative government should abolish inheritance tax because it penalises too many middle-income families, a policy group recommends. |
| It says rising property prices mean that estates of those "who could not in any sense be described as rich" are now above the £285,000 payment threshold. | It says rising property prices mean that estates of those "who could not in any sense be described as rich" are now above the £285,000 payment threshold. |
| The group's report also calls for reduced taxes on business profits to make the UK economy more competitive. | The group's report also calls for reduced taxes on business profits to make the UK economy more competitive. |
| Shadow chancellor George Osborne will respond to the proposals on Friday. | Shadow chancellor George Osborne will respond to the proposals on Friday. |
| 'Not popular' | 'Not popular' |
| Led by former Cabinet minister John Redwood, the Competitive Challenge working group says the government has introduced many "stealth taxes" since Labour came to power 10 years ago. | Led by former Cabinet minister John Redwood, the Competitive Challenge working group says the government has introduced many "stealth taxes" since Labour came to power 10 years ago. |
| Its report says: "Inheritance tax is not a popular tax. | Its report says: "Inheritance tax is not a popular tax. |
| "This has become even more true as the swift rise of house prices in much of the country has resulted in many people, who could not in any sense be described as rich, suddenly finding that their family will be liable to pay quite substantial amounts upon their estate. | "This has become even more true as the swift rise of house prices in much of the country has resulted in many people, who could not in any sense be described as rich, suddenly finding that their family will be liable to pay quite substantial amounts upon their estate. |
| "We recommend the abolition of inheritance tax." | "We recommend the abolition of inheritance tax." |
| The inheritance tax threshold is due to increase to £350,000 by 2010, which the government says will mean that none is payable on 94% of estates. | The inheritance tax threshold is due to increase to £350,000 by 2010, which the government says will mean that none is payable on 94% of estates. |
| Mr Osborne has promised to make economic stability the priority | Mr Osborne has promised to make economic stability the priority |
| The Tory working group's report says corporation tax, payable on business profits, should be reduced from 30p to 25p in the pound. | The Tory working group's report says corporation tax, payable on business profits, should be reduced from 30p to 25p in the pound. |
| For small businesses it should be 20p - the same as the standard income tax rate - it adds. | For small businesses it should be 20p - the same as the standard income tax rate - it adds. |
| The report warns that, since 1997, the UK has "slipped down the global league tables of tax competitiveness, as other countries have reduced both corporate and income tax". | The report warns that, since 1997, the UK has "slipped down the global league tables of tax competitiveness, as other countries have reduced both corporate and income tax". |
| Countries with lower rates, such as Ireland and the US, have seen business "grow especially quickly," it adds. | Countries with lower rates, such as Ireland and the US, have seen business "grow especially quickly," it adds. |
| The group says one million more people in the UK are paying the higher rate of income tax - of 40% - than in 1997 and that the threshold "should be raised". | The group says one million more people in the UK are paying the higher rate of income tax - of 40% - than in 1997 and that the threshold "should be raised". |
| It also recommends that capital gains tax should not be paid on any asset held for more than 10 years. | It also recommends that capital gains tax should not be paid on any asset held for more than 10 years. |
| HAVE YOUR SAY Inheritance tax is double taxation and should be scrapped as soon as possible Matt, Knutsford Send us your comments | HAVE YOUR SAY Inheritance tax is double taxation and should be scrapped as soon as possible Matt, Knutsford Send us your comments |
| The Conservative MP, Michael Fallon, told BBC Radio's Five Live he believed inheritance tax was a growing problem. | |
| "In London and the south particularly, but also in areas of the north, because of rising house prices there are hundreds of thousands of couples who are going to suddenly be hit with this inheritance tax when their parents die," he said. | |
| "It's not paid by the wealthy. It's paid by those of course who inherit." | |
| The working group which produced the report is one of several set up by Conservative leader David Cameron and its ideas will not necessarily become party policy. | |
| Mr Osborne is expected to respond to the proposals at a press conference on Friday. | Mr Osborne is expected to respond to the proposals at a press conference on Friday. |
| He has said the Conservatives will ensure economic stability before promising tax cuts and promised there will be no "lurching right". | He has said the Conservatives will ensure economic stability before promising tax cuts and promised there will be no "lurching right". |
| This stance has been criticised by several prominent figures within the party, including former chairman Lord Tebbit. | This stance has been criticised by several prominent figures within the party, including former chairman Lord Tebbit. |
| Labour has said Mr Redwood's proposals mean the Conservative "old guard" is eroding Mr Cameron's authority. | Labour has said Mr Redwood's proposals mean the Conservative "old guard" is eroding Mr Cameron's authority. |
| The Liberal Democrats have claimed the working group's figures do not add up. | The Liberal Democrats have claimed the working group's figures do not add up. |
| Shadow chancellor George Osborne, who is also overseeing the Tories' election strategy, will be answering your questions on Friday. Take part by using the form below. | Shadow chancellor George Osborne, who is also overseeing the Tories' election strategy, will be answering your questions on Friday. Take part by using the form below. |