Thursday, January 10, 2013

UK politician George Osborne advises on how to avoid tax

From the Green Benches, via Tax Research: This shows a slightly younger-looking George Osborne, presumably before he became UK Chancellor  (the source seemed to think it was probably in around 2005.)
"the one piece of advice I would give Bill is: there are some pretty clever financial products which enable you to in effect pass on your home, or the value of your home, to your son or daughter, and then get personal care paid for by the state. I probably shouldn't be advocating this on national television."
He appears to be smirking while saying part of this. Take a look.

He looks pretty clever now, in light of all that's happened in the UK. Members from all parties, including his own, have been scrambling to show how distasteful they find all this stuff.

Update: a friend of TJN's adds a technical note:
"I don't think he is talking about Inheritance Tax (IHT) avoidance but getting round the 'problem' of people with money or property - usually below the IHT threshold - having to spend it on care in old age (which is what nest eggs might be thought to be there for).  What he seems to be advocating is passing it on to the kids first so when the local authority means tests Grandma, she qualifies for free care."


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