Covid-19: Death Duties and Inheritance Tax
Debate between Baroness Gardner of Parkes and Baroness Penn
Baroness Penn (Con)
My Lords, it is important to distinguish between the legitimate use of reliefs and those engaging in avoidance by bending the rules to gain a tax advantage that Parliament never intended. The Government have taken action in this area. Since April 2011, inheritance tax and trusts have been brought into the disclosure of tax avoidance schemes regime. This is to ensure that any new or innovative inheritance tax avoidance schemes involving transfers into trusts must be disclosed to HMRC.
Baroness Gardner of Parkes (Con) [V]
My Lords, I confess to finding this question insensitive at this time, as it seems to be seeking to penalise for ever those who died from Covid and their families. Will the Minister instead consider the Australian system whereby people are taxed during their lifetime but there are no death duties?
Central Bank Digital Currency
Debate between Baroness Gardner of Parkes and Baroness Penn
Baroness Penn (Con)
I agree with my noble friend on the importance of privacy considerations in these matters. We know that more than 80% of central banks globally are doing some form of work on CBDCs and different nations will take different approaches. In the UK, Her Majesty’s Treasury and the Bank of England are looking at all the public policy considerations of a CBDC very carefully, including privacy.
Baroness Gardner of Parkes (Con) [V]
My Lords, can the Minister comment on the extent to which the increased use of digital payments during the pandemic is expected to accelerate the development of central bank digital currency in the UK?
Baroness Penn (Con)
The increase in digital payments during the pandemic has happened without the introduction of a central bank digital currency. However, the Government continue to look at the potential benefits of introducing a digital currency which may improve the resilience and innovation of payment systems within the UK.
NHS: GP Vacancies
Debate between Baroness Gardner of Parkes and Baroness Penn
Baroness Penn (Con)
As I said to noble Lords before, one of the initiatives the Government are undertaking is providing extra funding to doctors to train in those hard-to-recruit areas, to increase provision there. The noble Baroness is right to say that equality of provision is an important part of the NHS, and it is something that we strive to deliver.
Baroness Gardner of Parkes (Con) [V]
My Lords, it is worrying that the situation has changed so much, and that two-thirds of GP consultations now have to be done by telephone, as time and practical access to surgeries are so limited, and it is no longer possible just to walk in. In those circumstances, it is difficult to know whether a case of obesity, for example, is getting worse or improving. Seeing patients personally is much to be preferred. But when they ring the doorbell they have to be let in, they can only be spaced in a certain number of chairs, and everything has to be cleaned after each patient leaves. It really is difficult. As for the shortage of GPs, I wonder whether we might get some from Commonwealth countries—as I came, years ago, when there was such a shortage of dental practitioners. There may now be surplus doctors in some other countries, who we could ask to help us out.
Baroness Penn (Con)
The noble Baroness is correct in her references to the measures taken in GP surgeries to control infection. Those are incredibly important during a pandemic. However, telephone and video consultations can be a triaging process to allow people to have face-to-face consultations for the appropriate amount of time with the appropriate primary care worker.
Inheritance Tax
Debate between Baroness Gardner of Parkes and Baroness Penn
Baroness Penn
My Lords, as I have said, we will look at the public finances and how we can put them on to a sustainable footing after this crisis, but during this crisis our focus is on getting support to households now. We have made a number of changes to the inheritance tax system recently, including the Office of Tax Simplification report, and we will continue to keep all these aspects under review.
Baroness Gardner of Parkes (Con)
My Lords, Australia abolished federal inheritance tax in 1979. Following that, by 1984 all estate duties, state and federal, were removed nationally. Have the Government assessed the pros and cons of systems used by other countries in this inheritance tax issue and, if not, will they commit to doing so? These answers may cover many of the points raised by other noble Lords in this Question.
Baroness Penn
The Government often look at systems in other countries to see what can be learned from them. In the UK, the Government think that inheritance tax makes an important contribution to the Exchequer, while balancing the importance of allowing those who have worked hard and built up an asset that they want to pass on the ability to do so.