Inheritance Tax

Baroness Bowles of Berkhamsted Excerpts

Wednesday 20th May 2020 Lords Chamber

[Baroness Penn]

My Lords, I point out that in 2018-19, inheritance tax receipts were at a record high, and 70% of inheritance tax comes from estates valued at £1 million or more. I believe that the noble Lord is referring to certain exemptions that come under agricultural and business property. While we recognise that there are some concerns, the policy intention behind those exemptions is to allow family farms and businesses to be passed on without having to be broken up to pay inheritance tax. We think that that is an important aim.

[Baroness Bowles of Berkhamsted (LD)]

The APPG on Inheritance and Intergenerational Fairness has recommended replacing inheritance tax with a 10% flat rate gift tax payable on both lifetime and death transfers. Would that not be a good way of getting rid of this hated tax with its complex exemptions and avoidance, and potentially bring forward economic demand benefits?

[Baroness Penn]

My Lords, the Government keep the tax system under review and any changes made are taken in consideration of economic competitiveness, levelling up growth across the UK and their impact on individuals and businesses. However, I am not aware of any active consideration of the APPG’s proposals.