Inheritance Tax: Cohabiting Siblings - Question

Part of the debate – in the House of Lords at 12:19 pm on 10th February 2021.

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Photo of Lord Campbell-Savours Lord Campbell-Savours Labour 12:19 pm, 10th February 2021

My Lords, to follow up on the interesting question from the noble Baroness, Lady Deech, is there not a compromise? If the problem is a requirement for a sibling to sell a jointly owned and occupied property to pay IHT, why not simply defer the deceased’s liability, thereby leaving the surviving sibling undisturbed? The taxman would ultimately be paid. This could be done on the basis of a charge on the property, perhaps even tapered in favour of the Revenue or the surviving sibling, dependent on tax rate policy.