Inheritance Tax: Cohabiting Siblings Debate

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Baroness Deech

Main Page: Baroness Deech (Crossbench - Life peer)

Inheritance Tax: Cohabiting Siblings

Baroness Deech Excerpts
Wednesday 10th February 2021

(3 years, 10 months ago)

Lords Chamber
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Baroness Deech Portrait Baroness Deech (CB) [V]
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Does the Minister agree that life can be very unfair to single people and elderly people? This law is discriminatory. Siblings and family carers may have struggled on for years looking after each other, and they are saving the state a fortune in social care. Why should they not enjoy a tax deferral when one of them dies, especially since the state will recover on the death of the second survivor?

Baroness Penn Portrait Baroness Penn (Con)
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I remind noble Lords of the context that each individual can pass on at least £325,000 without any inheritance tax charge. That is well above the average house price in the UK. For those who are affected, there are also provisions where it is possible to have 10 years to pay off inheritance tax in instalments if the estate contains a house that is unsold.