What are the Tories thinking with insane £1,000,000 inheritance tax threshold proposal for family homes?

[Figmentofmyimagination]

It's almost as if they have completely lost their way.

And as others have said, 1m is nothing these days. We're in the SE and I drive past at least 50 houses worth that just driving to the local shop....

Maybe they think they will capture the "young person" vote of young people who are waiting for their parents to die.

I'm delighted with this announcement. Really pleased that the Tories are making their values and priorities clear, instead of pretending that they actually give a toss about how the other half live.

Austerity for the masses, tax cuts for the wealthy few. Classic Tory. :)

Hopefully this will help to illuminate the very real choice that the electorate has to make on May 7th. I'll bet that Ed and his buddies are rubbing their hands in glee.

As PP said, they promised a £2 million threshold 5 years ago and that never happened. This is as likely as their promise that anyone over 75 will be guaranteed a same day appointment with a GP.
It's all shite.

It's the baby boomers, rather than the young people who will be doing the imminent inheriting, surely.

Fantastic I say. A lot of homes fall under tge current inheritance tax threshold. My mums small 2.5 bed semi detached house on the outskirts of London does, it is worth in crazy London prices around £500k, yet she is no millionaire, as like a lot of others like her.

My objection is that having an allowance for family homes will discourage elderly people from downsizing. We need elderly people to downsize to release family homes on to the market. It is unfair that a person in a nursing home might only 500k in the bank would pay inheritance tax, but some who is still in a home worth 800k would be exempt.

I am in favour of raising the threshold of inheritance tax, but home owners should not have an unfair advantage over non home owners.

Oh, and just for the record - I would potentially benefit personally from this change, and I still think it's classic Tory wankery.

They are thinking that ppl have already paid tax on their earnings to buy the house so there shouldn't be inheritance tax except for the extremely wealthy

Not heard of MIRAS, then? Generations of house-buyers got substantial tax-relief on their mortgages.

And that's before we get into the way-above-inflation increase in the house price, a windfall on which no tax has been paid.

If Ed was a politician worth his salt, he'd up it to £2M. That'd stuff the Tories and to claim that anyone leaving £1M are the wealthy few is rubbish.

£1Bn = wealthy few

£1M = South London working class who bought a house in Clapham in the 1970s.

Waiting for your parents to die doesn't really sit terribly well with the whole "striving" narrative though, does it?

Apparently around 22000 families might benefit from this policy over the course of the next parliament. I'd call that a wealthy few. Many people inherit fuck-all!

Meanwhile, the Tories are going to cut £12billion from the welfare budget.

I live in a £1.4 million house currently.
Only because its London.
Elsewhere it would be a hell of a lot less.
Bought it 20 years ago .

You are very right Really. I am pleasantly 'surprised' that people on here are supportive of a pretty 'nondescript' change . The reality is £5 Millon is what some people think £1Millon is Therefore £1Millon is = to £250K 25 years ago. However, I am expecting the Labour lot to come on and have a go. 'OH hang on most of the Labour Luvie's on here ' live in £750k Houses in London anyway....

I support this.

A single mother squeezed into a 2 bed flat in London would be liable for IHT if she died and her kids would have to sell the flat and move in order to pay it.

This ridiculous idea that people are living champagne lifestyles because their properties are "worth" a fortune is stupid. Also the idea that only rich people who die and leave fortunes to their rich adult offspring pay IHT is misguided.

If you died and your kids were at primary school you would still have to pay it. Horrible unfair tax.

It's just exactly what you would expect from the Conservatives! (along with cutting benefits for the poorest members of society) Agree with previous poster that at least it removes any possible ambiguity about Conservative values and priorities.

The south London working class were not buying houses in clapham in the 70s. They were living on council estates. If they were lucky. Or scuzzy private rentals if they weren't.

This policy is all about the entrenchment of wealth, not just the raising of the IHT limit but also the way it will be paid for - cutting tax relief on pensions for higher earners. Those higher earners that stand to inherit something will probably find the policy neutral - those higher earners who come from nothing or very little will not. But the Tories don't care about those people - they think they shouldn't be earning good money anyway. Because they aren't 'one of us'. So, they are fine with taking money from them to give to their friends (rather than to give to the NHS or the DfE).

The whole thing stinks.

I would rather they did something about the crazy prices than worry about inheritance tax for people who are

A - dead
B - have made a huge capital gain due to a spiralling property market without ever having to pay capital gains tax

It's a start, but I'd have been happier if the limit had been higher. Still, it's a start.

On the news, it said this will affect a very small number of estates. So no, it wont help ordinary families. It will help well off families.

The south London working class were not buying houses in clapham in the 70s. They were living on council estates.

As the son of South London Working class parents I have to say this is bollocks. When my Dad died, we just scraped under the IHT threshold by £90. He was a postman.

I'm certainly not well-off but my house is over the £325 K threshold, so all my savings would be taxed at 40% under the current system. (Outskirts of London and I've already downsized once.) It was Labour who put it up last time.

Really tired - I think it's IHT on all estates, not just those involving a house sale.

It won't make me vote Tory, but might be a consolation if they get back in.

Yes! I keep thinking that, Figment!

Gideon says it promotes Tory values of "providing for your children" - as opposed to teaching them to stand on their own two feet, then? Not to mention the endlessly repeated virtue of working for your money, and much trumpeted moral peril of getting "something for nothing".

Or is it just the poor who are required to be virtuous?

I despair. People support this which benefits well off people only. On threads about cuts to those with disabilities, I just get told the country can't afford to provide what it used to.

Toby as the daughter of south London working class parents I can say that it's not bollocks at all. your dad must have had some substantial luck in his life to be able to buy a house in clapham in the 70s if he was truly working class (perhaps he had an inheritance, hmmm?).