Inheritance Tax
Debate between Markus Campbell-Savours and Lewis Cocking(3 days, 3 hours ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lewis Cocking (Broxbourne) (Con)
I want to support the family home, family farms and small businesses right across the United Kingdom, and I back this motion. It is a fundamental Conservative principle that, as Margaret Thatcher once said, “freedom flourishes” when people can rely on the security of owning their own home. In the same speech, she made a very important point relevant to this debate when she said that a home is more than a financial asset, as it is a “stake in the future” and something to be passed on to the next generation. That is why inheritance tax matters.
As we have heard, when someone dies, 40% of their money and property is taken by the taxman, if the total value exceeds £325,000. By raising the threshold, hon. Members on all sides of this House accused us of cutting taxes for the wealthiest in our society. I can tell them that the constituents I represent in Broxbourne are certainly not some of the wealthiest in our society. In fact, there are parts of my constituency that rank among the most deprived in the UK. Despite that, average house prices across Broxbourne are £433,000. Houses in my constituency that are just over the threshold include a two-bedroom maisonette in Cheshunt and a two-bedroom bungalow in Hoddesdon. Those properties are not mansions. Homeowners in Broxbourne have worked hard to live in those places, and it is not their fault that property values have risen by more than 10% in the last five years. On that trend, more and more ordinary families are being pulled into paying inheritance tax.
Labour is making this worse by freezing the threshold until 2031. By then, one in six families will face paying an inheritance tax bill. I believe this is wrong. As my hon. Friend the shadow Chancellor set out, we would completely abolish inheritance tax on the family home and raise the threshold to £1 million for a couple. We have a clear plan.
Markus Campbell-Savours (Penrith and Solway) (Lab)
I wonder—I have not read this anywhere—is there a cap on the value of the family home that will be exempt? For example, would the penthouse at One Hyde Park, which sold for about £175 million, be completely exempt?
Lewis Cocking
My right hon. Friend is absolutely right. This is a tax on aspiration.