Buy Cameron, Sell Long Term Investments

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Tim Lund
Posts: 6718
Joined: 13 Mar 2008 18:10
Location: Silverdale

Buy Cameron, Sell Long Term Investments

Post by Tim Lund »

There is so much wrong with this

Election 2015: Tories would cut inheritance tax
A Conservative government would end inheritance tax on family homes worth up to £1m, David Cameron is to announce.

It means more owners of homes in the UK would be able to pass them on to their children without paying tax.
The policy is likely to be at the centre of the Tory election manifesto, which will be launched next week.

...

The £1bn cost of the Conservative policy will be paid for by reducing tax relief on the pension contributions of people earning more than £150,000, says the party.
Perhaps least important, the hit on people making pension contributions is not limited to those earning more than £150,000. In his recent Budget, George Osborne announced a further reduction on the Pensions Life Time Allowance, which would penalise those who end up taking more than £1 million out of their pensions. There are many such who will never have been earning anything like £150,000.

Maybe we don't need to cry for them, but the more important consequence is that such reasonably well off people are on the one hand being discouraged from making long term investments in the stock market, while being given a massive new tax break for the money they have put in property.

Perhaps such desperate measures are needed to maintain property over valuation. That and allowing people to take money out of their pensions and invest as they see fit, such as buying properties for rent, which is the only option those without experience of long term investment in the stock market understand.
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