Tories ‘may delay inheritance tax plans’

Posted 26/07/2009

David Cameron has suggested that increasing the inheritance tax threshold (IHT) could be delayed if the Conservative Party wins the next general election.

Speaking to BBC1’s Andrew Marr Show, Mr Cameron said he wants to look “the British public in the eye” and be honest about the UK’s financial situation.

This, he stated, he means that “difficult decisions” on issues such as taxation and public spending would need to be taken.

This means that policies that were established prior to the onset of the economic crisis, such as raising the IHT threshold to £1 million, could be put back by five years.

“It’s a promise, something we want to do, obviously in a parliament,” Mr Cameron commented.

The Conservatives were recently encouraged to scrap their IHT pledge by the Policy Exchange thinktank.

Neil O’Brien, head of the body, said this would allow them to “level with the public” about the “truly horrific” situation they will inherit.