Inheritance tax exemption for increased council tax
Following calls for a new approach to wealth tax, the Lib Dem party has suggested introducing an exemption from inheritance tax on homes where owners have agreed to pay more council tax.
For many years, The Lib Dems have criticised the concept of inheritance tax, claiming that it is unfair, due to it taxing funds which have already been subject to income tax.
These new proposals, which the party is calling “Mansion Tax”, calls for the option to be given to owners of homes valued within higher price bands, to choose whether or not they would prefer to pay a higher rate of council tax in return for an exemption from inheritance tax.
The Mansion Tax proposals will be discussed in more detail at the party’s political conference in the next few weeks.