Tory committee to recommend IHT changes
Shadow chancellor to deliver report to Tory Leader
The Tory Tax Reform Commission, set up by shadow chancellor George Osborne
before David Cameron took over as party leader, will call for inheritance tax to
be scrapped on the family home.
This would mean that those inheriting a first home worth more than £285,000
would not have to pay the 40% IHT, which causes many people to have to sell the
inherited property to pay the tax bill.
The scrapping of IHT on first homes is one of a number of measures expected
to be recommended by the committee when it delivers its report next month,
The Observer reported.
The commission was set up to look at ways of make the tax system fairer.
However, the report could cause some friction in Tory ranks with rumours that
it could call for up to £20bn of tax cuts, at the same time as Cameron is
promising a Tory government would not put unaffordable tax cuts above spending
on public services.