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	<title>UK News &#187; inheritance tax</title>
	<link>http://blogs.reuters.com/uknews</link>
	<description>Our UK correspondents' insights</description>
	<pubDate>Thu, 04 Sep 2008 15:00:08 +0000</pubDate>
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		<title>Dear Chancellor&#8230; What would be in your letter to Darling?</title>
		<link>http://blogs.reuters.com/uknews/2008/05/01/dear-chancellor-what-would-be-in-your-letter-to-darling/</link>
		<comments>http://blogs.reuters.com/uknews/2008/05/01/dear-chancellor-what-would-be-in-your-letter-to-darling/#comments</comments>
		<pubDate>Thu, 01 May 2008 15:13:03 +0000</pubDate>
		<dc:creator>Jennifer Hill</dc:creator>
		
		<category><![CDATA[Consumer Finance]]></category>

		<category><![CDATA[UK News]]></category>

		<category><![CDATA[alistair darling]]></category>

		<category><![CDATA[chancellor]]></category>

		<category><![CDATA[income]]></category>

		<category><![CDATA[inheritance tax]]></category>

		<category><![CDATA[stamp duty]]></category>

		<category><![CDATA[tax]]></category>

		<guid isPermaLink="false">http://blogs.reuters.com/uknews/2008/05/01/dear-chancellor-what-would-be-in-your-letter-to-darling/</guid>
		<description><![CDATA[A cut in income tax and spending on the Olympics; an increase in the inheritance tax threshold, public sector pay, and spending on environmental issues: these would be consumers' key requests if they had the chance to pen a letter to the Chancellor. What would you ask for? ]]></description>
			<content:encoded><![CDATA[<p><a href="http://blogs.reuters.com/uknews/files/2008/05/darling.jpg" title="darling.jpg"><img src="http://blogs.reuters.com/uknews/files/2008/05/darling.jpg" alt="darling.jpg" class="imageframe" align="left" height="130" width="192" /></a>Labour might appear to have <a href="http://uk.reuters.com/article/idUKL2374165320080423">calmed the storm</a> over the scrapping of the 10 percent income tax rate for now. But new research shows the extent to which Britons are peeved about the level of income tax.</p>
<p>When asked what would be their key requests of Chancellor Alistair Darling, the largest proportion of more than 3,000 people polled for <a href="http://www.unbiased.co.uk">Unbiased.co.uk</a> &#8212; 31 percent &#8212; said they&#8217;d like to see a cut in income tax. And, it seems, many Britons feel an obligation to help the less well-heeled: while 12 percent would like to see it reduced for everyone, 19 percent want a cut for less affluent sections of society.</p>
<p>The issue was, perhaps unsurprisingly, found to be the most pressing for younger generations &#8212; those with long working lives and greater earning potential ahead of them. Around 44 percent of 18 to 24-year-olds surveyed want a cut, compared to 19 percent of 55 to 64-year-olds and 13 percent of those aged 65 to 74.</p>
<p>But the requests do not stop there: almost a quarter would ask the Chancellor to provide a better level of state pension, 6 percent want increased pay for public sector workers, 5 percent increased support for carers, the same percentage an increase in the inheritance tax threshold to 750,000 pounds (from a current 312,000 pounds), and 2 percent want the stamp duty thresholds to be reviewed.</p>
<p>Others would implore the Chancellor to reconsider public spending: 5 percent want funding for the third generation of nuclear deterrent to be scrapped, 4 percent call for a four billion pound <a href="http://uk.reuters.com/article/sportsNews/idUKL218817420080422">cap on the Olympic budget</a>; and the same proportion want more spending on environmental issues.</p>
<p>It&#8217;s easy to see why: soaring house prices have pushed more people into the inheritance tax net and sent stamp duty bills soaring, &#8220;fiscal drag&#8221; &#8212; whereby thresholds fail to rise in line with inflation &#8212; is pulling people into new and higher tax brackets, and <a href="http://uk.reuters.com/news/environment">interest in &#8220;green&#8221; issues</a> is on an upward trend.</p>
<p>But don&#8217;t forget that there are simple things we can all do to keep the taxman&#8217;s hands off our cash. The nation is wasting a whopping 9.3 billion pounds in unnecessary tax payments &#8212; from the likes of people not making use of their <a href="http://www.moneyfacts.co.uk/savings/bestbuys/mini-cash-isa.aspx">individual savings account allowance</a> (a total 7,200 pounds this year, of which 3,600 pounds can be stashed in cash), wasting tax credits and not taking steps to reduce their taxable estate for inheritance tax purposes.</p>
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		<item>
		<title>Should inheritance tax be raised?</title>
		<link>http://blogs.reuters.com/uknews/2008/04/15/should-inheritance-tax-be-raised/</link>
		<comments>http://blogs.reuters.com/uknews/2008/04/15/should-inheritance-tax-be-raised/#comments</comments>
		<pubDate>Tue, 15 Apr 2008 10:28:30 +0000</pubDate>
		<dc:creator>Stephen Addison</dc:creator>
		
		<category><![CDATA[Consumer Finance]]></category>

		<category><![CDATA[Division Bell]]></category>

		<category><![CDATA[UK News]]></category>

		<category><![CDATA[IHT]]></category>

		<category><![CDATA[inheritance tax]]></category>

		<category><![CDATA[Labour Party]]></category>

		<category><![CDATA[poverty]]></category>

		<category><![CDATA[social mobility]]></category>

		<category><![CDATA[wealth]]></category>

		<guid isPermaLink="false">http://blogs.reuters.com/uknews/2008/04/15/should-inheritance-tax-be-raised/</guid>
		<description><![CDATA[Inheritance tax is a vital tool to help encourage social mobility and break down entrenched barriers of wealth and privilege, says a group of Labour thinkers. Do you agree?. ]]></description>
			<content:encoded><![CDATA[<p><a href="http://blogs.reuters.com/uknews/2008/04/15/should-inheritance-tax-be-raised/338/" rel="attachment wp-att-338" title="cash.jpg"><img src="http://blogs.reuters.com/uknews/files/2008/04/cash.thumbnail.jpg" alt="cash.jpg" class="imageframe" align="left" height="104" width="150" /></a>As house prices have risen over the years, so have arguments over inheritance tax.</p>
<p>No longer the death duty of old, forcing the impoverished aristocracy to flog a few paintings from the family collection now and again, IHT has hit mainstream middle England. It has arguably overtaken council tax as the most politicised duty after income tax &#8212; witness the electric effect on Conservative fortunes when they pledged to raise the threshold to one million pounds at last Autumn&#8217;s party conference.</p>
<p>Opponents say <a href="http://www.hmrc.gov.uk/cto/iht.htm">IHT</a> is basically unfair, the final insult that plunders estates on which all sorts of tax has already been paid and which grabs our money from the hands of our children.</p>
<p>But many in the Labour party see it as a wrecking ball to help demolish the walls of social inequality, as an <a href="http://uk.reuters.com/article/personalFinanceNews/idUKNOA53428020080415">open letter </a>to Gordon Brown from a group of Labour MPs and academics shows.</p>
<p>Reduce IHT and you reduce your chances of encouraging social mobility and spreading the benefits of wealth, they say.</p>
<p>Do you agree? Should inheritance tax be going up, rather than down?</p>
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