COUNCIL TAX REFORM - LABOUR CONSIDER 'DEATH TAX'

4.12.11pm BST (GMT +0100) Tue 16th Aug 2005

A report in today's Daily Mail claims that Labour has devised a 'death tax' to relieve the huge pressure of council tax on older people. The 'deferred payment' system would remove the immediate burden but allow local authorities to cash in later. Those who own their homes could choose to pay less or avoid the tax altogether. Councils would then claim back all the tax owing when they die from the value of their home. Their children would pay in full, with interest, when they inherit the property.

Sarah Teather, spokesperson on pensions said:

"Pensioners get a raw deal from the unfair Council Tax, but saddling grieving families with massive death taxes is not the answer. Tinkering with Council Tax is not enough. It must be scrapped and replaced with a fair system based on ability to pay."