Tories: "We'll put Inheritance Tax threshold at £1 million"

01/10/2007

Shadow Chancellor George Osborne has promised to slash inheritance tax and stamp duty in a keynote speech at the Economic Competitiveness debate in the Conservative Party Conference.

A Conservative Government would raise the threshold of Inheritance tax to £1 million and that of stamp duty to £250,000, in what George described as "the most important reform of capital taxes for a generation".

And he outlined plans to pay for these tax cuts with a £25,000 levy on those who register for non-domicile status.

"I will not promise un-funded, undeliverable tax giveaways to dress up a press conference in an autumn election campaign. For this party lower taxes aren't just for Christmas - they're for life," he said.

Alistair Darling MP, Labour's Chancellor of the Exchequer, speaking in response to George Osborne's speech, said: "Today George Osborne made a £3.5 billion tax commitment. Treasury analysis shows it is impossible for him to raise the money he needs to pay for this commitment from his proposals on residence and domicile.
 
"Initial costings by the Treasury show that George Osborne's proposal would raise a maximum of £650m, leaving George Osborne at least £2.9 billion short. So George Osborne cannot afford the promises he is making. He cannot afford to cut inheritance tax.
 
"George Osborne started his speech today by asking "Are we ready to lead?" It is clear from the mistakes he has made today that the Tory party still fail the first test of a credible Opposition. Their sums simply do not add up."

On the issue of green taxes, George pledged to adopt the Environment group's plan to tax airlines rather than air passengers.