Inheritance Tax: Cohabiting Siblings Debate

Full Debate: Read Full Debate

Baroness Falkner of Margravine

Main Page: Baroness Falkner of Margravine (Crossbench - Life peer)

Inheritance Tax: Cohabiting Siblings

Baroness Falkner of Margravine Excerpts
Wednesday 10th February 2021

(3 years, 10 months ago)

Lords Chamber
Read Full debate Read Hansard Text
Baroness Penn Portrait Baroness Penn (Con)
- Hansard - - - Excerpts

My Lords, the Government understand that individuals work hard to build up their assets to pass on to their families. That is why the nil rate for inheritance tax exists and, as my noble friend has noted, exempts the vast majority of estates from paying inheritance tax. I also note that it makes an important contribution to the funding of public services in this country, equivalent to around 1p on income tax.

Baroness Falkner of Margravine Portrait Baroness Falkner of Margravine (CB)
- Hansard - -

My Lords, the Minister tells us that 95% of estates do not pay any inheritance tax. In that case, could she tell us what estimate Her Majesty’s Treasury has done of the infinitesimally small number of people who would come under this situation? Has it done any research? Does it have any evidence to show what the impact on revenue from inheritance tax would be if it were to make this legal change, so that those of us who want to see that change can bring about Private Members’ Bills to so address this issue if it is unwilling to do so?

Baroness Penn Portrait Baroness Penn (Con)
- Hansard - - - Excerpts

My Lords, the Government are of course aware of my noble friend’s previous Private Member’s Bill on this subject. The question is not just one of cost; it is about legal relationships between individuals. Married couples and couples in civil partnerships have a unique legal status and it is difficult to see why cohabiting siblings should benefit where other cohabiting family members, for example, would not.