Inheritance Tax
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential implications for her policies of differences in inheritance tax thresholds for people (a) with and (b) without children; and if she will make an assessment of the potential impact of such thresholds on saving for adult care costs.
Answered by James Murray
The estates of all individuals benefit from a £325,000 nil-rate band for inheritance tax. The residence nil-rate band is a further £175,000 for those passing on a qualifying residence on death to their direct descendants, such as children or grandchildren. Other countries recognise the relationships between parents and children with different thresholds in equivalent systems.
The Government keeps all taxes under review as part of the policy making process.
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