Family businesses under threat from new EU Inheritance Tax policy

All my various comment IDs are not permitted on politicalbetting.com which is a shame as I enjoy bating the readers there with talk of rigged polls, paid for politics and biased media.  I suppose I should be pleased it’s taken them so long to ban me, same as conservativehome did a while ago.  The readers like my comments, so what Mike Smithson up to?  That said PB is a good place to pick up on what’s being talked about and I still browse the comments.  This caught my eye in a comment by Flightpath.

Talk of Inheritance Tax being banned or reduced is of course totally deceptive on the part of politicians.   They seem far more keen on eliminating the few things that escape IHT like business assets, and Cameron has failed to keep his promise of raising the threshold to £1 million.  Britain has the highest rate of IHT in the wold at 40%, with the threshold fixed at £325,000 for ten years.  The video above explains why the government never works for the voters, and never keeps its promises, David Howard interviewed by Mark Windows.

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It was a great relief for me when John Major introduced the measure that made all business assets not liable for IHT, when businesses are transferred onwards to the next generation.  This measure is now coming under threat, in Germany and within the EU.

Indigo said:

Very strange state of affairs in Germany where a tax ruling is likely to hit loads of companies, and no one seems to want the change except the constitutional court… Is this really a EU change they are trying really hard not to call an EU change, because its likely to cause them to have to abolish IHT.

http://www.bloomberg.com/news/2014-12-16/billions-in-german-family-wealth-threatened-by-tax-ruling.html

Why do you obsess about the EU so?
The FT says
”Following a 2009 reform, recipients of business assets are exempt from 85 per cent of inheritance taxes if the owners do not cut jobs and wages for five years. If after seven years there are still no lay-offs then the new company owners are not liable for any inheritance tax at all”

Unsurprisingly the law seems to have opened up a range of loopholes.

” “The level of exemptions for companies is excessive and I would be very surprised if the court did not share this view,” said Lars Feld, director of the Walter Eucken Institute in Freiburg and a member of chancellor Angela Merkel’s panel of economic advisers.”

TAP – It’s a good moment to sign Article 20 and quit the EU, and then abolish Inheritance Tax.  That sounds like it should be a UKIP policy.  UKIP’s Head of Policy Tim Aker is quoted –

“UKIP has consistently advocated the complete abolition of inheritance tax.  Inheritance tax brings in under £4bn – less than a third of what we spend on foreign aid.  The super-rich avoid it, while modest property owners get caught by it.  It hits people during a time of grief and UKIP will budget in its 2015 spending plans to completely abolish this unfair death tax.”

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