Gordon Brown has raked in £24.6 billion in inheritance tax
- 80% increase in the numbers of people caught by the tax
- Amounts raised to ratchet up by 21% in next two years
Gordon Brown has raked in approximately £24.6billion in inheritance tax (IHT) during his reign as Chancellor says Wilkins Kennedy, the Top 30 accountancy firm. That is enough money from the controversial tax to pay for 31 Millennium Domes (full statistics below).
According to Wilkins Kennedy the number of taxpayers caught by the tax per year has leapt by 80% since Gordon Brown became Chancellor in 1997. IHT is expected to be paid on 36,000 estates in 2006-07 up from just 20,000 estates in 1997. Wilkins Kennedy points out that the latest HMRC estimates forecast this figure will increase even further to 38,000 in 2007-08!
Wilkins Kennedy say that over the next two years the amount of IHT collected is expected to increase by 21% to £4billion a year in 2007 -08.
Roger Williams, Partner, of Wilkins Kennedy says: “What is particularly controversial about this tax on death is that it no longly catches the estates of the super rich and the landed gentry. The tax now hits the averagely wealthy. It is people who just want to pass their family home down to the children that now face hefty tax bills.”
“It is a massive disincentive to generate and to preserve wealth.”
“The reason why so much is being collected is that Gordon Brown has made sure that the nil rate band has lagged far behind house price inflation.”
House prices have increased by 200% over the last 10 years whilst whilst the he nil rate band has only increased by 40% over the period.
“Gordon Brown has also refused to lift the limit of £3,000 a year on tax free gifts over the last 10 years. Not by one penny!”
Roger Williams also explains that Gordon Brown’s attack on preowned assets and trusts have had other serious ramifications.
- Taxpayers have has their potential tax liabilites going back to 1986 reopened – creating huge uncertainties
- Huge tax charges are now placed on many trusts. Money that could previously be held in trust for children for many years now has to be given to them by the time they are 18 or incur a tax charge. Many people consider 18 to be an inappropriately young age.
Press enquiries:
Roger Williams
Partner
Wilkins Kennedy
Tel: 01784 435561
