Wednesday, 21 March 2007

Tax rip off budget

Like many parents I worry about how my children are ever going to get their foot on the property ladder and what I will leave them when I'm gone.

Like many listeners I was delighted to hear Brown say he was going to raise the inheritance tax allowance from £285,000 to £350,000 by 2010 - until I did the maths.

House prices in the UK are still rising by 10% a year so a house worth £285,000 will be worth £380,000 by 2010 - so yet again the allowances dont keep up with the inflation.

I learnt my maths in Cambridge City. Prices there are rising at 22% a year so the same home would be worth £520,000.

Gordon yet again you have failed to give me much hope for my children.


judith said...

That's the clearest exposition of what items from the Budget will actually mean to the taxpayer that I've come across so far.

Vicky Ford said...

Thank you! Let your friends know and I'll keep blogging about economics if you all keep reading it! Vicky