Oral question asked in the House of Lords, by Viscount Bledisloe (Crossbench). It was answered on Wednesday, 10 October 2007.

Taxation: Inheritance Tax and Capital Taxation

Question: My Lords, surely the problem that was concerning people was their ability to pass their family home on to their children. Why does it matter, if one wants to pass one’s family home on to one’s children, whether one is still married or—and I declare an interest—divorced?

Answer: The answer, my Lords, is that we are concerned. As the noble Lord will recognise, we have made special arrangements so that those who have been widowed should fall within the framework and are beneficiaries. However, he will also recognise that taxation cut-off points must be made on a clear judgment about the percentage of the population whom we can afford to assist in these terms. He will also appreciate that the Chancellor has addressed the issue, benefiting 97 per cent of households.

Secondary information