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AEGON: Conservatives’ proposals to abolish IHT

17th August 2007 Print
AEGON’S technical manager, Margaret Jago comments: “In 2002 the number of people with estates over the IHT threshold was around two million.

“Today, more than four million people are affected so it is easy to see why the Conservatives’ economic competitiveness group, headed by John Redwood feel this tax is unfair and should be abolished. If the IHT threshold was increased in line with recent house price inflation it would currently stand at around £450,000. So another possibility would be to raise the current IHT threshold, which would mean more people are exempt from this tax.

“If indeed this proposal was to become accepted Conservative policy, and they were to gain power and abolish IHT, they would have to look at other ways to replace the £4bn loss in revenue. It’s likely other taxes would have to be increased.

“AEGON welcomes a debate on the future of IHT as this proposal adds even more uncertainty in the market. Individuals should still be looking at carrying out IHT planning under the current rules”.