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The Vultures pick the bones clean

Crackdown on 7-year inheritance tax gift rule - Telegraph
Now HM Revenue & Customs has announced a thorough investigation into how people use the seven-year gift rule — which is intended to stop families avoiding the tax — in an attempt to raise hundreds of millions of pounds more.

Any gift made seven years before a person's death is not subject to inheritance tax, but money given within seven years may be taxed at 40 per cent.

The authorities are trawling through financial information such as bank statements and pension plans, to make sure any gifts made during the seven years before the donor's death have been accurately declared. If families fail to complete paperwork accurately they could be fined.

This has alarmed tax experts and campaigners who have criticised Mr Brown for not raising the £300,000 inheritance tax threshold in line with soaring property prices.

Philip Hammond, the shadow chief secretary to the Treasury, said: "Since 1997 under Gordon Brown, the number of families paying inheritance tax has doubled. But not content with this, HMRC are now going to go through old records to see if they can squeeze yet more tax out of bereaved families.

"This is one more example of the Revenue tightening the screws on the taxpayer to feed Gordon Brown's insatiable appetite for cash."

Inheritance tax only hits the prudent Middle Class, the rich have schemes
Lord Forte leaves slim pickings - Telegraph
Lord Forte, who made a multi-million pound fortune creating the Forte hotels group, left just £80,150 in his will, - clever man. It is tax on already taxed savings, it is unfair and must go.

Comments

I don't think we should get rid of this tax. It should be increased to £1 million though.

The inheritors never earned the money so why shouldn't it be taxed? A better tax to get rid of would be income tax.

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