Inheritance Tax
(asked on 26th February 2018) - View Source
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent estimate he has made of the cost to the Exchequer of lost revenue resulting from changes to inheritance tax thresholds announced in Budget 2015 in the (a) 2017-18, (b) 2018-19, (c) 2019-20 and (d) 2020-21 fiscal year.
At Summer Budget 2015, the government announced the introduction of a ‘residence nil rate band’ for inheritance tax when a home is passed on death to a direct descendent. It will start at £100,000 in 2017-18, increasing in £25,000 increments to £175,000 in 2020-21. This, in addition to the existing nil rate band of £325,000, will increase the inheritance tax free threshold to £500,000 for many individuals, and up to £1 million for many married couples and civil partners by 2020-21.
The latest estimates of the cost to the exchequer of introducing the residence nil rate band from 2017-18 to 2021-22 are published in Table 2.2 of the Spring Budget 2017 official publication at: