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Cameron makes tax pledge in conference speech

David Cameron pledged to raise the threshold for the 40p income tax rate from £41,900 to £50,000 over the course of the next parliament.

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Government to scrap pension inheritance tax

Savers will be able to pass on money in their pension pots tax-free after their death under government plans to abolish a punitive 55% penalty tax.

Chancellor George Osborne announced the measure at the Conservative conference in Birmingham.

George Osborne at the Conservative conference in Birmingham. Credit: Isabel Infantes/EMPICS Entertainment

It will apply to anyone inheriting money held in a pension fund from April of next year and should benefit hundreds of thousands of people.

Mr Osborne is set to tell an audience at the Tory conference tomorrow: "People who have worked and saved all their lives will be able to pass on their hard-earned pensions to their families tax-free."

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