Asked by: Lord Campbell-Savours (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what estimate they have made of the cost of raising the inheritance tax threshold to £1 million.
Answered by Lord Deighton
HM Revenue and Customs publishes various illustrative tax changes on tax revenues in 2014 to 2015, 2015 to 2016 and 2016 to 2017, and estimates of the cost of tax reliefs for 2012 to 2013 and 2013 to 2014.
This information has been deposited in the Library of the House.
Asked by: Lord Campbell-Savours (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what estimate they have made of the gain to the Exchequer of ending relief against tax to gifts made up to seven years prior to death.
Answered by Lord Deighton
HM Revenue and Customs’ (HMRC’s) most recent estimate of the cost to the Exchequer of providing Taper Relief on transfers made between three and seven years before death was that this relief cost £25 million in 2013-14 and will cost £25 million in 2014-15[1].
[1] This information was published in December 2014 at:
Asked by: Lord Campbell-Savours (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what estimate they have made of the effect on receipts to the Exchequer of the abolition of inheritance tax and the taxing of recipients of inherited wealth at the recipients' marginal rate of tax.
Answered by Lord Deighton
The information requested is not available.
Asked by: Lord Campbell-Savours (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they will list all the exemptions from inheritance tax.
Answered by Lord Deighton
A full list of all inheritance tax reliefs and exemptions was published by the Office of Tax Simplification as part of their review into tax reliefs[1].
The list is as follows:
Relief/exemption title |
A&M trusts, Bereaved Minor Trusts, 18-25 Trusts, Pre-78 Protective Trusts, Pre-81 Disabled Trusts and Employee Benefit Trusts |
Acceptance in Lieu |
Agricultural property relief |
Allowance for other tax liabilities |
Alternatively secured pension funds - deferral of charge |
Annual exempt amount (£3,000) |
Armed forces - death in service |
Armed forces - medals and decorations for gallantry or valour |
Business property relief |
Cash options under approved annuity schemes |
Changes to the deceased's estate |
Charge on participators in close companies |
Chevening Estate & Apsley House |
Co-morientes (simultaneous deaths) |
Compensation paid to Nazi victims |
Conditional exemption |
Conditional exemption and relevant property trusts |
Corporation sole |
Dispositions allowable for income tax |
Dispositions for benefit of employees |
Dispositions for maintenance of family |
Dispositions in respect of pension benefits |
Dispositions in respect of pensions |
Dispositions not intended to provide gratuitous benefit |
Double charges relief |
Double taxation agreements |
Employee-ownership trusts |
Estate duty on gifts to the nation |
Estate duty transitional |
Excluded property |
Exclusion of benefit reserved by donor |
Expenses occurred abroad |
Failed PETs gifted for national purposes |
Fall in value relief for transfers within 7 years of death |
Foreign armed forces pay and moveable property |
Foreign currency accounts |
Foreign-owned works of art |
Funeral expenses |
Gifts for national purposes |
Gifts of land to housing associations |
Gifts on marriage and civil partnership |
Gifts to charities |
Gifts to political parties |
Government savings of persons domiciled in the Channel Islands or the Isle of Man |
Government securities owned by non-United Kingdom domiciled persons |
Grant of agricultural tenancy |
Heritage maintenance funds |
Land in habitat schemes |
Leftover alternatively secured pension funds paid to charity |
Life tenant becoming entitled to settled property |
Lloyd’s premium trusts |
Loss on sale relief (buildings) |
Loss on sale relief (shares) |
Newspaper and employee trusts |
Nil rate band for chargeable transfers not exceeding the threshold (£325,000) |
No gratuitous benefit and grants of agricultural tenancy (temporary charitable trusts) |
Normal gifts out of income |
Open ended investment companies and authorised unit trusts |
Overseas pensions |
Payment of income |
Payment of income (temporary charitable trusts) |
Pension schemes |
Potentially exempt transfers |
Private treaty sales |
Property held on trust for bereaved minors or person aged 18-25 |
Quick succession relief |
Reduced rate of tax for relevant property charges |
Reduced rate of tax for temporary charitable trusts charges |
Registered pension schemes trust charges |
Reversionary interests |
Reverter to settlor |
Reverter to settlor's spouse |
Scottish agricultural leases |
Small gifts exemption |
Spouse / civil partner relief |
Taper relief |
Trade or professional compensation funds |
Transfer to employee trusts |
Transferable nil rate band |
Trust property becomes excluded property |
Trust property distributed in first quarter of the year |
Trustees costs and expenses |
Trustees costs and expenses (temporary charitable trusts) |
Trustees costs, payment of income, no gratuitous benefit, grants of agricultural tenancy and reduced rate of charge for A&M trusts, Bereaved Minor Trusts, 18-25 Trusts, Newspaper and Employee Trusts, Pre'78 Protective Trusts & Pre 81 Disabled Trusts |
Trusts with vulnerable beneficiaries - annual limit |
Unilateral double taxation relief |
Voidable transfers |
Waiver of dividends |
Waiver of remuneration |
Woodland relief |
[1] The OTS report and full list of reliefs, allowances and exemptions is available at https://www.gov.uk/government/publications/tax-reliefs-review
Asked by: Lord Campbell-Savours (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they will list all classes of assets which are subject to relief from inheritance tax.
Answered by Lord Deighton
The classes of assets which qualify for inheritance tax reliefs are as follows:
For business relief –
a business or interest in a business,
shares in an unlisted company,
shares controlling more than 50% of the voting rights in a listed company,
land, buildings or machinery owned by the deceased and used in a business they were a partner in or controlled,
land, buildings or machinery used in the business and held in a trust that it has the right to benefit from.
For agricultural relief –
land or pasture that is used to grow crops or to rear animals,
growing crops,
stud farms for breeding and raising horses and grazing,
trees that are planted and harvested at least every 10 years,
land not currently being farmed under the Habitat Scheme or a crop rotation scheme,
the value of milk quota associated with the land,
some agricultural shares and securities,
farm buildings, farm cottages and farmhouses.
For woodlands relief – the value of timber in a woodland
Further details about inheritance tax reliefs can be found on the Gov.uk website.[1]
[1] https://www.gov.uk/inheritance-tax/inheritance-tax-reliefs