Calling to the Sunday Mirror, David Cameron fundraisers are advising donors how to avoid tax bills while swelling party coffers.
Details of this tactic revealed days after the PM slammed comedian Jimmy Carr as “morally wrong “for paying just one per cent of tax on £3.3 million he invested in an offshore fund. The revelation outraged Opposition MPs last night and further fuel of public anger about the methods used by wealthy to avoid tax.
Tory Bosses are telling donors how to dodge death duties by leaving cash to the Conservative Foundation, a fundraising group launched by Lady Thatcher and Sir John Major.
The Foundation gives advices on legal ways of avoiding huge bills for inheritance tax by leaving cash to the Tories. The operation has helped raise millions for the Tories since 2009.
Its directors including
PM close friend Lord Feldman
It accounts show the foundation received income £497,307 in 2010 much more of the cash coming from the estates of dead supporters.
The threshold for inheritance tax is £325.000. Death duties 40 per cent must be paid on anything above that. But the Foundation says a donation to its endowment fund will benefit the party and “could also reduce the inheritance burden on your estate”.
It says “ A legacy left to the Foundation can be subtracted for the value of your estate before inheritance tax is calculated bringing the total value of your estate closer to the threshold so that any tax due can be reduced or even removed completely. “It give you an example on its website of how much cashed could be saved on estate of £400.000 which would attract inheritance tax of £30,000 – 40 per cent of the £75,000 over the £35,000 over. So the inheritance tax bill would be £14.000”.
The tactic has infuriated Labour MPs. Labour senior source said:” The Tories are aggressively exploiting this way of avoiding inheritance tax to boost their coffers. It typical of the hypocrisy we expect from a party cut taxes for the millionaires at the expense of pensioners and ordinary families”.