Tory tax plans (2)

TODAY’s PAPERS have some interesting takes on the report from the Conservatives’ Tax Reform Commission.

According to The Telegraph the plan to scrap inheritance tax on primary residences would ‘pour petrol on the flames of the British love affair with bricks and mortar’. It says the plan would create a perverse incentive to trade up in the property market in old age because people would cash in assets like shares that would still be subject to capital gains tax. Go here and scroll down.

Meanwhile, the Independent’s Andrew Grice writes that the Tories and Labour have indentified the baby boomer vote as a crucial factor in the next election. Go here.

‘The Tories believe the group can be won over because they are worried that the prosperity they enjoy will not be passed on to their children, who may struggle to get on the housing ladder and enjoy less generous pensions. But Labour regards them as natural supporters because many have progressive values and favour spending on public services rather than tax cuts.’

Grice quotes a speech by shadow education secretary David Willetts at the Conservative conference:

‘We baby boomers haven’t just bought our houses cheap and written off the borrowings with high inflation. We’ve then pulled up the ladder behind us by restricting the supply of housing as well, further pushing up prices.’