article_snippet: Homeowners with properties worth up to £1million will be able to pass Homeowners with properties on to Homeowners with properties children tax-free under plans drawn up by George Osborne, it was claimed last night.
article_snippet: Passing on properties: The tax break would mean just over 20,000 fewer estates would annually have any inheritance liability.
article_snippet: According to Treasury papers leaked to The Guardian, the proposed measures would also reduce the inheritance tax bill on properties worth up to £2million by £140,000.
article_snippet: The tax break, which would mean just over 20,000 fewer estates would annually have any inheritance liability, is expected to cost nearly £1billion.
article_snippet: the move ‘ will allow you to say you are exempting those with modest homes from inheritance tax (with up to £1million of assets) exempted in certain circumstances.
article_snippet: You have indicated a desire to reduce the burden of inheritance tax.
article_snippet: ‘Having considered the cost of a substantial increase in the existing nil rate band, you and the Chancellor have indicated you would like instead to introduce a more targeted measure to allow the family home to be passed onto the children of deceased without it leading to an inheritance tax liability.
article_snippet: This reflects the concern raised by the public about rising house prices increasingly leading to estates with a modest house particularly in London and the South East paying inheritance tax.
highlights_snippet: Inheritance tax bill on properties worth up to £2m 'reduced by £140,000' 