The Chancellor is being urged to implement a £2bn inheritance tax increase on family homes.
Rachel Reeves is under pressure to eliminate the £175,000 residence nil-rate band in the upcoming Budget on October 30.
The Resolution Foundation stated there is “a strong argument” for removing this allowance, which enables homeowners to protect an additional £175,000 of their assets from inheritance tax.
The left-leaning think tank described the relief, introduced in 2017, as “complex and distortionary” and estimated it costs around £2bn annually.
Ms. Reeves criticized the Conservatives for creating “a tax break for a wealthy elite” after taking power in 2010, when they pledged to exempt family homes from inheritance tax.
In a 2011 article for The Guardian, she wrote: “The phased implementation of this unjust and poorly conceived plan is set to begin in April. It offers a tax break for a wealthy elite at a time when the NHS is facing a funding crisis, and the Government is moving to cut £3.7bn in disability benefits from the most vulnerable in society.
“Raising the inheritance tax threshold to £1m for couples will do nothing for the vast majority of ordinary families. In fact, it’s likely to benefit just 0.04% of people in England and Wales.”
