Tory millionaire whines he is ‘haunted’ by having to pay tax on fortune after he dies
Posted June 2, 2023 by: Admin
In a display of diverse opinions within the Tory party, a group of more than 50 MPs, led by Nadhim Zahawi, is advocating for a revision of inheritance tax laws rather than its complete abolition. Zahawi, who faced criticism for his own tax affairs earlier this year, expressed concerns about the prospect of his fortune being taxed upon his demise. Joining him in this plea are prominent figures such as former cabinet member Jacob Rees-Mogg and former Home Secretary Priti Patel, who believe that a careful reconsideration of inheritance tax is needed.
This group, known as the Conservative Growth Group, intends to publish a paper outlining their arguments in favor of reforming inheritance tax. While they hope to persuade Chancellor Jeremy Hunt to address this issue in his Autumn Statement, they acknowledge that only a small portion of the population currently pays the tax.
In an op-ed for The Telegraph, Zahawi emphasized the moral and economic aspects of inheritance tax, referring to it as a “spectre” that lingers in the minds of many. He argued that the tax not only feels morally wrong, as it confiscates assets upon one’s passing, but also leads to financial inefficiencies and detrimental effects on the wider economy.
Zahawi believes that by addressing inheritance tax, the Prime Minister and the Chancellor can demonstrate their support for families who aspire to pass on their hard-earned savings to future generations. He commended their efforts to navigate global inflation and geopolitical conflicts and suggested that eliminating inheritance tax would further strengthen their commitment to families.
The Treasury, however, maintains a different perspective, asserting that only 7% of estates are affected by the tax. Additionally, they highlighted that spouses or civil partners can inherit estates of up to £1 million without incurring any inheritance tax liability. The Treasury spokesperson also emphasized that the revenue generated from inheritance tax, which exceeds £7 billion annually, plays a vital role in funding essential public services like healthcare and education.
While the debate continues, it is worth noting that not all members of the Conservative party advocate for complete abolition. Simon Clarke, for instance, proposes raising the inheritance tax threshold to alleviate the burden on families. He believes that increasing the thresholds to £500,000 for individuals and £1 million for couples would create a fairer system.
As discussions unfold, the future of inheritance tax remains uncertain. The diverse viewpoints within the Tory party reflect the complexity of the issue and highlight the importance of finding a balanced approach that considers both the concerns of wealthy individuals and the funding needs of public services.
