Inheritance Tax: Cohabiting Siblings
Debate between Baroness Penn and Lord Pannick(10 months, 2 weeks ago)
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Baroness Penn (Con)
My Lords, it is important to set this Question in context. Each individual has a nil rate band of £325,000. Two cohabiting siblings who jointly own a house may have an inheritance tax liability only when the value of the house exceeds £650,000—well in excess of both the average UK house price and the average London house price. There are also circumstances in which inheritance tax can be paid over a period of time, giving the beneficiaries time to adjust to changed circumstances. That facility would enable people in those circumstances to remain in their home, which I believe is the concern at the heart of my noble friend’s Question.
Lord Pannick (CB)
My Lords, I declare an interest in that I acted for the two Misses Burden, who unsuccessfully challenged this policy in the European court in 2008. This is not a question of law but a question of fairness. How can it be fair for two elderly sisters who have lived together for the whole of their lives, jointly own their property and have each made wills leaving the property to each other on the death of the first to be denied a tax benefit enjoyed by married couples and civil partners who may have a far less committed, developed and permanent relationship, or does fairness not count in the implementation of the tax system?
Baroness Penn (Con)
My Lords, the Government have attempted to draw up a system that is fair but recognises the unique status of marriage and civil partnerships. As I pointed out to your Lordships’ House, very few estates fall subject to inheritance tax, and we have put in place processes to ensure that those who live in the same house, for example, are able to meet their obligations over time, to lessen the impact of inheritance tax.
Court of Justice of the European Union: Comprehensive Sickness Insurance
Debate between Baroness Penn and Lord Pannick
Baroness Penn (Con)
I reassure the noble Baroness that the Government will indeed want to have the complete picture when it comes to the impact of this judgment and its implications. I am sure that will include hearing from those who have been impacted directly by it.
Lord Pannick (CB)
My Lords, the Minister will know that Article 86 of the withdrawal agreement says:
“The Court of Justice of the European Union shall continue to have jurisdiction to give preliminary rulings on requests from courts and tribunals of the United Kingdom made before the end of the transition period.”
Can she tell the House how many more of these transitional cases are pending in the Court of Justice?
Baroness Penn (Con)
I do not have that figure for the noble Lord. I will happily go away, see if we have the figure and write to him with it. However, he is absolutely correct that the CJEU continues to have jurisdiction to make rulings on preliminary references from UK courts made before the end of the transition period, as happened in this case.