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Budget 2014: Osborne waives inheritance tax for emergency workers

by Max Skjönsberg on Mar 19, 2014 at 13:08

Budget 2014: Osborne waives inheritance tax for emergency workers

Chancellor George Osborne has waived inheritance tax for people working in the emergency services.

He said in his Budget speech that he would waive inheritance tax 'for those who give their lives protecting us’.

The current rate of inheritance tax is 40% on the value of an estate above the nil-rate amount of £325,000.

In an attempt to help emergency services, Osborne (pictured) also said he would  relieve the VAT on fuel for Air Ambulances and Inshore Rescue boat services across Britain, and provide a new air ambulance for London.

In a related announcement, Osborne said he would continue to direct the proceeds from Libor fines to military charities.

5 comments so far. Why not have your say?

Alex Morrison WM

Mar 19, 2014 at 14:26

Is this a joke? I've interviewed multiple members of the emergency services over the years and never found an IHT problem.

And I find the whole idea contemptuous as why should emergency workers get singled out for preferential treatment. And before anyone starts giving me earache, my late father was an ambulance driver and I have two serving police officers in my family.

This helps no one.

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Stewart Tomlinson

Mar 19, 2014 at 14:49

If I remember correctly wasn't the estate of the present Duke of Westminster's father exempt from estate duty, because it was held that the old Duke died as a direct result of wounds sustained in action during WW2? He did though die many years later.

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Jonathan Kirby

Mar 19, 2014 at 15:34

Does he not probably mean that if you die whilst actively working in emergency services IHT is waived, not if you die in retirement.

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Jeremy Stevens via mobile

Mar 19, 2014 at 19:38

I'm an emergency department doctor.... I "give [my] life to protect [the public]." Do I deserve the same inheritance tax break as the paramedics? We are the next in the chain, and have a far greater workload and level of responsibility. Just a thought.

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Sascha K

Mar 20, 2014 at 09:22

The writer has either misunderstood or been the victim of sub-editors going for a sensational headline. See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293759/37630_Budget_2014_Web_Accessible.pdf.

"2.89 IHT exemption for emergency service personnel – The government will consult on extending the existing IHT exemption for members of the armed forces whose death is caused or hastened by ***injury while on active service*** to members of the emergency services." My emphasis.

Also Osborne's words: "I am also today waiving inheritance tax for those in our emergency services ***who give their lives protecting us***."

So it would only apply to those who lose their lives after being stabbed by a nutter or burnt to a crisp or falling out of a tree trying to rescue Mrs Miggins' cat, or suchlike. It won't apply to retirees or those who die for non-work-related reasons. In the same way as for the armed forces.

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