Finance Bill

Written evidence submitted by Nicholas Rollin (FB 12)

Clause 9: Increased nil-rate band where home inherited by descendants

While it is a laudable aim to reduce the amount of inheritance tax liability for tax payers, it is an obvious distortion of the tax regime to favour only those property-based assets up to the new threshold.

The change is unfair to all those who have assets to pass on to heirs which are not in property.

The concession is unfair to all those tax payers who have properties in areas where property values are low and also have assets to a value that would take would otherwise have been covered by the new threshold.

By favouring property assets, the change introduces a distorting effect in the property market.

The concession regarding tax payers who have ‘downsized’ (moved to a lower value property) introduces a further layer of administrative complexity where it is not needed.

The solution is to amend the threshold as planned by the Chancellor, but to make it applicable to all assets.

September 2015

Prepared 18th September 2015