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| Axe inheritance tax, Tories urged | Axe inheritance tax, Tories urged |
| (10 minutes 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 £300,000 payment threshold. | |
| Shadow chancellor George Osborne said he would look very closely at the idea. | Shadow chancellor George Osborne said he would look very closely at the idea. |
| The report also calls for reduced taxes on business profits to make the UK economy more competitive. | |
| '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, which is not binding on the party, says: "Inheritance tax is not a popular tax. | Its report, which is not binding on the party, 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." |
| Estates worth up to £300,000 are exempt from inheritance tax. Any value after that is taxed at 40%. | |
| The threshold is due to increase to £350,000 by 2010, which the government says will mean that no inheritance tax 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 |
| Mr Osborne told BBC News: "I've got to make sure that we can afford it, that the country can afford it, that it is consistent with economic stability, that it's part of a coherent economic programme. | Mr Osborne told BBC News: "I've got to make sure that we can afford it, that the country can afford it, that it is consistent with economic stability, that it's part of a coherent economic programme. |
| "We are looking very closely at reform of inheritance tax and capital gains tax." | "We are looking very closely at reform of inheritance tax and capital gains tax." |
| 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 the Republic of Ireland and the US, have seen business "grow especially quickly," it adds. | Countries with lower rates, such as the Republic of 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 Five Live he believed inheritance tax was a growing problem. | The Conservative MP, Michael Fallon, told BBC Radio 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. | "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." | "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. | 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 has said the Conservatives will ensure economic stability before promising tax cuts and promised there will be no "lurching right". | Mr Osborne 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. |