Conservatives 'think about scrapping inheritance tax to win over voters' - costing Treasury £7bn a yr

Senior Conservatives are stated to be discussing abolishing inheritance tax - at an annual value of £7billion to the Treasury - in a bid to win over voters forward of the subsequent election.

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Downing Street is in talks about whether or not to scrap the levy in an try and shore up votes in so-called "blue wall" seats forward of a basic election in 2025.

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Supporters say it could possibly be a "gamechanger" within the south of England, the place the Tories worry dropping seats to opposition events, in keeping with The Times.

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The discussions are being held simply days earlier than three Conservative by-elections happen on Thursday.

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The votes might see Rishi Sunak turn out to be the primary prime minister since Harold Wilson in 1968 to concede three seats at by-elections on the identical day.

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As the occasion trails Labour in official polls, axing inheritance tax could possibly be thought of a manifesto pledge relatively than a coverage to be carried out subsequent yr.

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A supply informed the newspaper: "It's about being an aspirational nation.

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"You work hard, play hard and pass on your wealth. It's a live discussion."

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Read extra:Everything you need to know about by-election battlegrounds

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2:09

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What is inheritance tax?

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Inheritance tax is a cost on the property - together with property, cash and possessions - of an individual who has died.

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People with an property price lower than £325,000 often would not have to pay inheritance tax, nevertheless, the worth ought to nonetheless be reported.

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Anyone with an property above that worth is liable to pay an ordinary 40% tax on the quantity over the £325,000 threshold.

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However, for those who give away your private home to your youngsters or grandchildren, the brink can rise to £500,000.

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Two individuals co-habiting with joint dwelling possession might solely have inheritance tax legal responsibility when one individual dies and the worth of the property exceeds £650,000.

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A partner or civil associate can go on as much as £1m together with their dwelling with none inheritance tax legal responsibility.

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The common home worth is £285,000, in keeping with the most recent official figures.

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But abolishing inheritance tax might value the Treasury as much as £7bn a yr because the nation continues to battle a cost of living crisis and inflation stays excessive.

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A Treasury spokesperson stated the overwhelming majority of estates don't pay inheritance tax, with greater than 93% of estates forecast to have zero inheritance tax legal responsibility within the coming years.

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However, they added: "The tax raises more than £7bn a year to help fund public services millions of us rely on daily."

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Talks about inheritance tax come days after the federal government pledged to present hundreds of thousands of public sector employees together with academics and docs a 6% pay rise.

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Read extra:Millions of public sector workers get pay rise'On me personally' if inflation isn't halved, says PM

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1:42

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The pay enhance won't be funded by borrowing, Chancellor Jeremy Hunt has insisted.

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A Downing Street supply stated of the inheritance tax claims: "The PM has repeatedly said that he wants to cut taxes for people.

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"As Conservatives that's apparent, we wish individuals to maintain extra of their very own cash.

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"But the current economic situation means that the government is completely focused on halving inflation - to help people have more in their pockets at the end of each month.

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"This form of future-scoping hypothesis simply is not on the PM's thoughts for the time being and requires a distinct form of financial surroundings to the one we're working in."

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