Inheritance tax to be scrapped on homes worth up to £1m
4 July 2015
From the section UK
George Osborne promised to make the change during the election campaign
Chancellor George Osborne’s Budget is to confirm the end of inheritance tax on family homes worth up to £1m.
He is expected to tell MPs on Wednesday that the threshold at which the tax is levied will rise for couples from £650,000 after April 2017.
Writing in The Times, PM David Cameron and Mr Osborne said those who worked for their homes should be able to pass them on to family members.
The move fulfils a key pledge made in the Conservative’s election manifesto.
The policy will be funded by limiting the amount of tax relief on pension contributions given to those earning more than £150,000 a year.
In a joint article, Mr Cameron and Mr Osborne write: “As we promised in our manifesto, we’ll take the family home out of inheritance tax for all but the richest.”
They add: “It can only be right that when you’ve worked hard to own your own home, it will go to your family and not the taxman.”
Mr Osborne has been keen on the idea for nearly a decade, BBC political correspondent Chris Mason said.
Before the election, the chancellor told the BBC the plan “supports the basic human instinct to provide for your children”.
The allowance will be transferrable on the death of one spouse.
On properties worth more than £2m, the allowance will be tapered away until it is worth nothing to those with homes worth in excess of £2.35m.
Source:: BBC UK