Inheritance Tax

Debate between Noah Law and Rebecca Smith

Wednesday 14th October 2026 Commons Chamber

[Noah Law]

That is quite right. This is not pragmatic at all; this is complete ideology and returning to— [Interruption.] It is. It is pure ideology. The Conservatives are returning to their core comfort zone of defending only the very wealthiest at the expense of all the rest of us.

[Rebecca Smith]

I thank the hon. Member from my neighbouring county for giving way. I think his constituents would be quite shocked at him accusing the Conservatives of being ideological. Where is the aspiration for someone in Austell and this Cornwall constituency to grow those family businesses and to expand their family farms? Ultimately, his constituency is incredibly similar to mine, and I am in no doubt that some of the properties there are incredibly expensive but the salaries are not high. I challenge him; his constituents will have heard him say that they are fine with that, and that he is just tackling us from a point of ideology.

[Noah Law]

I respect the point the hon. Member makes and fully respect what she says about the aspirations of those of us who grew up in rural areas where property prices are often inflated. But I will be honest: I know very few people from back home who have ever paid inheritance tax. I do not know these people. If she would like to correct me on that—

--- Later in debate ---

[Rebecca Smith (South West Devon) (Con)]

I will follow on from my hon. Friend the Member for Farnham and Bordon (Gregory Stafford), who set out a huge amount of what I will talk about, not least about the constant referral to the wealthy that we have heard in this debate. Frankly, it is offensive to any person out there who is working and, in many cases, not earning very much money, but saving a lot of it and working tirelessly to be able to buy a property, to invest in a business and to do the right thing.

Frankly, the one thing that I will take away from this debate is the massive generalisation that anyone we represent is somehow wealthy, and anyone Labour Members represent is somehow not. It is a complete fallacy, and it shows a complete disdain for working people. Indeed, we heard the hon. Member for Hornsey and Friern Barnet (Catherine West) imply that anyone who was not relying solely on the state pension was earning a lot, which is preposterous.

Buying a home is the biggest financial commitment that many families will ever make. It involves decades of saving, mortgage repayments and sacrifices along the way. The Conservative pledge to abolish inheritance tax on the family home would ensure that families were not penalised for passing on the home that they had worked so hard to own, often at the expense of doing other things. We know full well that people on benefits are able to get all sorts of discounts. It is the hard-working families across the country who do not go to theme parks at discounted rates, because they are paying a mortgage or, indeed, saving for one in the first place.

We will also raise the general inheritance tax allowance to £500,000 per person, or £1 million for a married couple. Crucially, this increased allowance will also benefit those who are unmarried or do not have children. Currently, a single person has an inheritance tax limit of only £325,000, which I think is completely wrong. There are many single people out there who work hard, and who sometimes have money that they have themselves inherited and on which they have also paid tax at multiple points. I hear from single constituents on my patch who are just so frustrated at being expected, time and again, to pay tax in order to pay for everyone else. Our proposal would give them greater freedom to leave more of what they have earned to the people who matter most to them, whether that person is a sibling, a niece or nephew, or another loved one.

As I have said, this is not about the very wealthy who already use trusts and other mechanisms to protect their assets. This is about helping normal families who have seen the price of their family home shoot up over the years, tipping them over the threshold for inheritance tax through no fault of their own. Indeed, in my own Conservative constituency—the so-called wealthy area South West Devon—the Plymouth median salary is £36,500 pounds. Plymouth is generally seen as being quite poor, but in the West Devon and South Hams part of my constituency the median salary is between £26,500 and £30,000. These are hardly wealthy people. As my hon. Friend the Member for Harborough, Oadby and Wigston (Neil O’Brien) has rightly said, inheritance tax has

“become a tax for normal people who live on new build estates, not fancy people who have estates.”

Just 2.7% of homes were faced with an inheritance tax bill in 2009-10, but that could rise to 8.2% in 2029-30, according to research by Oxford Economics.

This issue is particularly relevant in the South Hams part of my constituency, where the average home costs £355,000, the third highest figure in the south-west. In Wembury, Brixton and Newton Ferrers, the median property sold for more than £360,000 in the last year, rising to more than £520,000 for detached homes. In Ivybridge, a property was recently sold for almost £420,000. Many of these properties were bought decades ago for considerably less, yet the basic inheritance tax threshold has remained frozen. Others have already mentioned the pension increase whereby pension funds will be included in inheritance tax calculations.

Scrapping inheritance tax on family homes is about strengthening the social contract, which is, in the great words of Edmund Burke, the indivisible bond between those who came before us, those who are here today, and those who will follow. Conservatives want to protect that partnership. We are backing parents who save responsibly and want their children and grandchildren to benefit from the sacrifices that they have made.

[Noah Law]

The hon. Lady has referred to the indivisible bond between families. Does she not agree that that bond must also apply to the community and the public more generally, from generation to generation?

[Rebecca Smith]

I think that is called general taxation, and these people have paid that throughout their working lives. Why are we now targeting them at the point at which they die, or indeed inherit money? I just do not think that is a workable opinion, and I deeply disagree.

The Conservatives want to protect the social contract. We are backing parents who have saved responsibly, and who want their children and grandchildren to benefit from the sacrifices they have made. As we have heard, that stands in stark contrast to Labour, which is widening the inheritance tax net ever further by sucking in family farms, pensions and family businesses. As Conservatives, we believe that hard work should be rewarded. Families who have done the right thing should be able to pass something on to the next generation.

Petitions

Debate between Noah Law and Rebecca Smith

Monday 28th October 2024 Commons Chamber

[Rebecca Smith (South West Devon) (Con)]

Derriford hospital needs an emergency care centre. Further to a similar online petition approaching 1,000 signatures, I am presenting this petition on behalf of my constituents and those who rely on Derriford hospital in Plymouth.

The petition states:

The petition of residents of the United Kingdom,

Declares that following the announcement of the New Hospital Programme Review, patients across South West Devon and across the South West are deeply concerned as to the future of University Hospitals Plymouth NHS Trust’s new Urgent and Emergency Care Facility at Derriford; further declares that the new Urgent and Emergency Care Facility is essential for the NHS to be able to accommodate for the region's above-average population growth; further that the new facility will treat the sickest patients more quickly, avoid unnecessary admissions, facilitate early discharge and improve outcomes; and notes that UHP's former Member of Parliament had secured £180 million of government funding for the project.

The petitioners therefore request that the House of Commons urges the Government to consider the resource needs of University Hospital Plymouth’s new Urgent and Emergency Care Facility whilst undertaking the New Hospital Programme Review and retain the funding previously committed to this project.

And the petitioners remain, etc.

[P003015]

[Noah Law (St Austell and Newquay) (Lab)]

If I may, Madam Deputy Speaker, I would like to take a moment to echo the calls from across the House this evening for the remembrance and appreciation of our veterans.

I am glad to have this opportunity to present a petition on behalf of the residents of Grampound relating to the last remaining pub in the village.

The petition states:

The petition of the residents of Grampound,

Declares that the Dolphin Inn is an Asset of Community Value.

The petitioners therefore request that the House of Commons urge the Government to lend support the Dolphin Inn Grampound, acknowledging that it furthers the social wellbeing and cultural, recreational and sporting interests of the local community.

And the petitioners remain, etc.

[P003013]