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| Inheritance tax to be scrapped on homes worth up to £1m | Inheritance tax to be scrapped on homes worth up to £1m |
| (about 1 hour later) | |
| Chancellor George Osborne's Budget is to confirm the end of inheritance tax on family homes worth up to £1m. | Chancellor George Osborne's Budget is to confirm the end of inheritance tax on family homes worth up to £1m. |
| He is expected to tell MPs on Wednesday that the threshold at which the tax is levied will rise for couples from £650,000 after April 2017. | He is expected to tell MPs on Wednesday that the threshold at which the tax is levied will rise for couples from £650,000 after April 2017. |
| Writing in The Times, PM David Cameron and Mr Osborne said those who worked for their homes should be able to pass them on to family members. | Writing in The Times, PM David Cameron and Mr Osborne said those who worked for their homes should be able to pass them on to family members. |
| The move fulfils a key pledge made in the Conservatives' election manifesto. | |
| Mr Cameron and Mr Osborne also unveiled housing measures to help people buy and build their own home. | Mr Cameron and Mr Osborne also unveiled housing measures to help people buy and build their own home. |
| 'Only right' | 'Only right' |
| The inheritance tax policy will be funded by limiting the amount of tax relief on pension contributions given to those earning more than £150,000 a year. | The inheritance tax policy will be funded by limiting the amount of tax relief on pension contributions given to those earning more than £150,000 a year. |
| In a joint article, Mr Cameron and Mr Osborne write: "As we promised in our manifesto, we'll take the family home out of inheritance tax for all but the richest." | In a joint article, Mr Cameron and Mr Osborne write: "As we promised in our manifesto, we'll take the family home out of inheritance tax for all but the richest." |
| They add: "It can only be right that when you've worked hard to own your own home, it will go to your family and not the taxman." | They add: "It can only be right that when you've worked hard to own your own home, it will go to your family and not the taxman." |
| Mr Osborne has been keen on the idea for nearly a decade, BBC political correspondent Chris Mason said. | Mr Osborne has been keen on the idea for nearly a decade, BBC political correspondent Chris Mason said. |
| Before the election, the chancellor told the BBC the plan "supports the basic human instinct to provide for your children". | Before the election, the chancellor told the BBC the plan "supports the basic human instinct to provide for your children". |
| At present, inheritance tax is payable at 40% on the value of an estate in excess of the tax-free allowance of £325,000 per person. Married couples and civil partners can pass the allowance on to each other. | At present, inheritance tax is payable at 40% on the value of an estate in excess of the tax-free allowance of £325,000 per person. Married couples and civil partners can pass the allowance on to each other. |
| From April 2017 parents will each be offered a further £175,000 "family home allowance" to enable them to pass property on to children tax-free after their death. | From April 2017 parents will each be offered a further £175,000 "family home allowance" to enable them to pass property on to children tax-free after their death. |
| This will be added to the existing £325,000 inheritance tax threshold, bringing the total transferable tax-free allowance from both parents in a married couple or civil partnership to £1m. | This will be added to the existing £325,000 inheritance tax threshold, bringing the total transferable tax-free allowance from both parents in a married couple or civil partnership to £1m. |
| Since the election, it is reported the plan has been tweaked so that where couples have "downsized" to a smaller property after their children have left home, the allowance will still apply to the old family home. | Since the election, it is reported the plan has been tweaked so that where couples have "downsized" to a smaller property after their children have left home, the allowance will still apply to the old family home. |
| Critics are expected to argue the plan will benefit the wealthiest in society. Last year, the estates of 35,000 were subject to inheritance tax; around 5% of the total. | Critics are expected to argue the plan will benefit the wealthiest in society. Last year, the estates of 35,000 were subject to inheritance tax; around 5% of the total. |
| Before the general election, the Institute for Fiscal Studies said of the Tory plan: "This (and in fact any) IHT cut will also go disproportionately to those towards the top of the income distribution". | Before the general election, the Institute for Fiscal Studies said of the Tory plan: "This (and in fact any) IHT cut will also go disproportionately to those towards the top of the income distribution". |
| In April Labour's Chris Leslie, currently the party's shadow chancellor, said the policy was a "panicky promise" from the Conservatives. | In April Labour's Chris Leslie, currently the party's shadow chancellor, said the policy was a "panicky promise" from the Conservatives. |
| He said at the time: "The Tories made a promise on inheritance tax before the last election and they broke it. | He said at the time: "The Tories made a promise on inheritance tax before the last election and they broke it. |
| "At a time when our NHS is in crisis and most working people are paying more under the Tories, it cannot be a priority to spend £1bn on a policy which the Treasury says would not apply to 90% of estates." | "At a time when our NHS is in crisis and most working people are paying more under the Tories, it cannot be a priority to spend £1bn on a policy which the Treasury says would not apply to 90% of estates." |
| Do you own a home worth up to £1m? Are you affected by issues covered in this story? You can email haveyoursay@bbc.co.uk with your comments. Please leave a contact number if you're happy to be contacted by a BBC journalist. | Do you own a home worth up to £1m? Are you affected by issues covered in this story? You can email haveyoursay@bbc.co.uk with your comments. Please leave a contact number if you're happy to be contacted by a BBC journalist. |