by
Irish-Le-Feaux
@ 2007-05-26 - 08:52:05
Signed a petition on the Government website some time ago relating to Inheritance Tax.
Thought I would post the reply for two reasons.
1. The government appears to believe that we are all six years old or mentally retarded and replies in like kind.
2. I thought you may be interested in what they consider fair taxation.
Here is the reply:
Thank you for signing the e-petition calling for the abolition of Inheritance Tax.
The Government understands that paying taxes whether they are direct or indirect, on our income, savings or spending is not always popular. But people also know that, without the money raised through taxation, there would be no funds to pay for our health service, our schools, our police, our Armed Forces, our roads and many other services essential to our nation and quality of life. What Governments have to do is to try to ensure the tax system is both fair and efficient.
Inheritance tax, paid on estates worth over £300,000, is one way of raising funds for our public services. There is, of course, nothing new about estate duties. They have been in force, in one way or another, for over a hundred years. Inheritance tax - which replaced Capital Transfer Tax - was introduced in its present form in 1986.
No money or assets, no matter how much, left to spouses, civil partners or to charity attracts inheritance tax. No inheritance tax is paid on any estates under £300,000 or on the first £300,000 of estates larger than this. Above this limit, assets are taxed at 40%.
The result is that inheritance tax is paid by the estates of just 6% of those who pass away, around 35,000 estates this year. But the money raised, it is forecast, will amount to £4 billion this year.
It is important to emphasise that if inheritance tax or any other tax was abolished, either public spending would have to be cut or money would have to be raised elsewhere. The £4 billion raised from Inheritance Tax is equivalent, for example, to an increase of over 18p on petrol duty.
But while the Government has no plans to abolish inheritance tax, we do keep all taxes under review to ensure they remain fair and efficient. The Chancellor has already announced that the inheritance tax allowance, now at £300,000, will rise faster than forecast inflation over the coming years and will reach £350,000 by 2010/11.
Thank you again for signing this e-petition.
What a bunch of prats!!!!
Irish