Labour MP blames lack of support for failure of inheritance tax amendment

A Labour MP's proposal that siblings should be entitled to the same inheritance tax break as a married couple has been discarded.

The Guardian reports that Frank Field's suggested amendment to the finance bill, which would have meant relatives who have resided together for more than ten years were exempt from inheritance tax has not been made law, with Mr Field blaming lack of Tory support.

According to the news provider, the Conservative party will not vote for the amendment, preferring to focus on raising the inheritance tax threshold to £1 million.

It quotes economic secretary to the Treasury Kitty Ussher as stating that there is "something special" about marriage which sees the nil band rate applying.

"While we have sympathy and compassion for elderly people who have been living together for the vast majority of their lives, we feel that in view of the value of the estates concerned, government intervention is not required," she added.

Current law states the surviving sibling will have to pay 40 per cent of the property's value if it is more than the inheritance tax threshold of £312,000.

Those needing to pay inheritance tax in Northern Ireland can seek advice from solicitors or refer to the regulations which will explain which part of the deceased's estate is ineligible for the levy.

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