Taxation: Inheritance Tax

Baroness Gardner of Parkes Excerpts

Wednesday 21st December 2011 Lords Chamber

Asked By

[Baroness Gardner of Parkes]

To ask Her Majesty’s Government whether, in the light of the Law Commission’s Report Intestacy and Family Provision Claims on Death, they intend to review inheritance tax law.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, there are no plans to review inheritance tax law in the light of the Law Commission’s report. The first £325,000 of every estate is exempt from inheritance tax. Inheritance tax is not usually paid on transfers of assets between spouses or civil partners. Only 3 per cent of estates are expected to have an inheritance tax liability in 2010-11.

[Baroness Gardner of Parkes]

The Answer does not surprise me but does disappoint me. Perhaps we do not need to look as far as the whole inheritance tax law situation. My concern is about people who live together long-term as carers or sisters—there is the famous case of the Burden sisters—and yet on the death of one, they are often forced to sell their home. Would it not be possible, even for the Chancellor in his Budget, to agree that under such circumstances there should be no obligation to sell the family home? To make people homeless at the present time, when things are pretty desperate for many people, would perhaps cost the Treasury more in the social benefits that they will require than exempting the home in which they have lived for so many years.

[Lord Sassoon]

My Lords, it would be nice to come to the House bearing gifts in answer to the final Question before the Christmas Recess. However, I think noble Lords would be surprised if a Treasury Minister, of all people, came here to give some good news on this or much else. I say to my noble friend that I hear—