Taxation: Inheritance Tax

Lord Campbell-Savours Excerpts

Wednesday 21st December 2011 Lords Chamber

[Lord Sassoon]

If we want good news, the borrowing figures announced today for November are ahead of market expectations. I can bring good news, but not gifts. Seriously, I hear very loudly what my noble friend says. Indeed, the Law Commission report, which has just come out and to which the Government will reply within 12 months, addresses the question of co-habitants. I see that the report at paragraph 8.52, which my noble friend may have seen, notes that concerns were raised about the use of the word “couple” in our provisional proposal in that it was too broad and ambiguous a term and might not be sufficiently precise to exclude, as we intended, those who share a home but do not have an intimate relationship. Indeed, this is not an area that is covered in the Law Commission’s work.

[Lord Campbell-Savours]

My Lords, does the Minister not accept that an inheritance can completely undermine incentives in recipient generations? Is that not an argument for increasing the take from inheritance taxes?

[Lord Sassoon]

My Lords, the Government keep all tax matters under review, but we have no plans, as I have said, to change the law on inheritance tax.