Feeding the property addiction

Flip Chart Fairy Tales

A couple of scathing pieces on George Osborne’s plan to cut inheritance tax.

Janan Ganesh in the FT (my emphasis):

A Briton sets up a business, risking her savings and employing people on the way. If she makes a profit, it is taxed. If she sells the company, she is taxed on the capital gain.

Another Briton buys a home. Through chronic undersupply in the market, or travesty of a market, the price goes up by half in a few years. The only tax on the property is paid to the local council, at bands set a quarter of a century ago. If the homeowner sells, and it is his only house, he incurs no tax.

Yet another Briton inherits a house worth, say, £600,000, three times the national average. She pays no tax.

One of these capital-rich individuals built their asset from nothing, one bought theirs and watched…

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