Tuesday, December 05, 2006
Mitchell Brothers Face Hefty Inheritance Tax Bill When Peggy Karks It
For the programme, John Whiting, a tax partner at Price Waterhouse Coopers, has valued Peggy Mitchell’s flat at around £280,000, but with her jewelry and other assets, her sons could be faced with a tax bill on her death. John Whiting says: “Let’s not forget the pub – it is hers: she owns it – that’s probably got quite a good value. So, of course, if you put that and all her jewelry in, her estate in principle is well above the threshold. “We’ve just got to watch it, she’s just teetering in to the Inheritance Tax net so, of course, she’s the classic sort of person who just needs to keep an eye on it and, perhaps, just needs to think about it a bit.”
Economic Secretary to the Treasure Ed Balls tells the programme that only the wealthiest pay IHT. He says that if it was abolished and replaced by another tax such as a tax on petrol, it could mean 18p on a litre. If it wasn’t replaced with other taxes, it would mean a cut of £3bn from schools and hospitals around the country.
What an idiot. And to think, this is the man Gordon Brown intends to make Chancellor of the Exchequer.