Tories’ £1m inheritance tax giveaway aimed at wealthier households

17 March 2015

George Osborne has drawn up plans that would allow parents to pass a main property worth up to £1m to their childre

George Osborne has drawn up plans that would allow parents to pass a main property worth up to £1m to their children without paying any inheritance tax, according to Treasury papers leaked ahead of Wednesday’s budget.

The proposed measure would also reduce the inheritance tax bill on properties worth up to £2m by £140,000 and the Treasury analysis concludes that the scheme would “most likely benefit high income and wealthier households”.

In papers marked as sensitive, and seen by the Guardian, it is identified that “those already living in the wealthiest fifth of households are most likely to receive an inheritance”. The tax break would cost the Treasury nearly £1bn and is aimed primarily at southern propertied middle-class households.

The scheme was advanced by the chancellor ahead of the autumn statement, but blocked by the Lib Dems. It is now thought likely to be revived by the Tories within the next fortnight as one of its central election crowd pleasers – although it is not expected to feature as a measure in the budget statement, the last fiscal event of the coalition government.

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