Covid-19: Death Duties and Inheritance Tax

Baroness Altmann Excerpts

Thursday 24th June 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, in fact, the UK has one of the highest levels of wealth taxes in both the G7 and the OECD. We also have a highly progressive income tax system. The top 1% of income tax payers are projected to have paid over 29% of all income tax in 2019-20, an increase from 25% of all income tax in 2010-11.

[Baroness Altmann (Con) [V]]

My Lords, might an increase in tax on inheritances be considered to help pay for the reform of social care, for which I understand the Treasury is searching for the necessary funding?

[Baroness Penn (Con)]

My Lords, as I have set out, the Government’s approach to inheritance tax at the most recent Budget was to freeze those thresholds, which will raise additional funding. The Government’s plans for social care will be set out later this year.