Labour calls for inheritance tax changes

Labour calls for inheritance tax changes

Jeremy Corbyn has called for changes to inheritance tax to make the 40 per cent “death tax” fall harder on those with the biggest estates.

The new leader of the Labour party said told the Andrew Marr Show on Sunday that the system should be graded, so that a “normal house” should be able to be passed on tax-free.

Speaking to the BBC’s Andrew Marr Show ahead of the Labour Party conference in Brighton, Mr Corbyn said: “The richest 60,000 families have suddenly had a tax break. It should be graded actually.

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“Somebody leaving a normal house to their children or family - fine. But when you cut the overall rate of inheritance tax that means that the very richest become richer because of it.”

As for income tax, Mr Corbyn told the BBC’s Andrew Marr show that he “hopes” to lower the rate for the least well off.

But he said that he had no plans to raise the 50p income tax rate.

The Conservative party promised to lift the threshold at which the tax — 40 per cent at present — is paid so that after 2017 a couple with an estate worth less than £1m would pay nothing.

Under the current system individuals start paying the tax at a single rate of 40 per cent on wealth of more than £325,000 for an individual or £650,000 for a couple.

Last week more than two months after it was announced in the summer Budget, HM Revenue and Customs, clarified how the new residence nil-rate band will work in practice.