David Cameron has announced that parents will be able to pass on a family home, with value of up to £1 million to their children, without having to pay inheritance tax. It is said that this decision is a move calculated to expedite the Conservatives election campaign.
The Prime Minister has also revealed that the Conservative manifesto will expand the threshold to seven figures from April 2017.
Furthermore, Cameron also stated that the £1 billion annual cost of the plan would be paid for by reducing the tax relief on pension contributions for people earning more than £150,000.
Additionally, the individual tax-free allowed will increase from £325,000 to £500,000 when a property is involved. It will give the couple a shared £1 million tax-free fund.
David Cameron stated, “What this effectively does is take the family home out of inheritance tax. That is the right thing to do.”
