24 Jun 2014
Conservative backbench MPs have urged the Chancellor to reform stamp duty and inheritance tax, as projections show that taxes collected from savers and home buyers will soon exceed revenue from so-called ‘sin taxes’.
Nick De Bois, MP for Enfield North and Dominic Raab, MP for Esher and Walton, have called for a manifesto commitment to raise the inheritance tax threshold, and to scrap stamp duty on properties sold for less than £500,000.
Graham Brady, chairman of the 1922 Committee of Tory MPs, said: ‘The continuing increase in the amount of inheritance tax collected raises the importance of tackling this tax burden for many middle-income families.
Inheritance tax was designed as a tax for the rich, and is now paid by many middle-income families who have accumulated assets- usually their homes- paid for out of income that has already been taxed. I hope the next Conservative government will be in a position to change this.’
The calls come after a report by the Telegraph showing that there will be ‘more tax on savers than sinners’ within the next two years. The newspaper’s analysis of official Treasury projections suggests that by the end of the 2015/16 financial year, revenues from inheritance tax, stamp duty land tax and stamp duty on shares are projected to raise £21.9bn for Government coffers. That compares to £21bn raised through so-called sin taxes, including tobacco, wine, beer and cider duties.
In their 2010 election manifesto the Conservatives pledged to raise the inheritance tax threshold to £1 million, but the policy was left out of the Coalition agreement after opposition from the Liberal Democrats.