Inheritance Tax: Cohabiting Siblings

Lord Forsyth of Drumlean Excerpts

Wednesday 10th February 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, of course the Government recognise the strong family ties that my noble friend refers to. However, that is a different matter from the formal legal obligations that marriage and civil partnership relationships entail. I also remind noble Lords of the context that 95% of estates pay no inheritance tax at all.

[Lord Forsyth of Drumlean (Con) [V]]

My Lords, could my noble friend explain why the Treasury thinks a sexual relationship is necessary to avoid the trauma of losing one’s home to pay inheritance tax when one member of a long-standing couple dies?

[Baroness Penn (Con)]

As I said to my noble friend Lord Lexden, the issue is around the unique legal relationship that marriage and civil partnerships entail. No similar legal relationship exists for siblings.