An influential Liberal Democrat think tank will propose increasing the scope of inheritance tax (IHT) at the party conference next week, saying it had "become almost voluntary".
Currently, gifts made to family members more than seven years before the death of the donor are exempt from IHT. However, Lord Newby, the Liberal Democrat Treasury spokesman, will say that time frame "no longer adequately reflects current life expectancies" and should be raised to at least 15 years. The proposal is contained within Newby's report Tax and Coalition: Fairness and Responsibility? IHT is now so easy to avoid it is seen as voluntary, Lord Newby said. "[Current rules] no longer adequately reflect life expectancies. One of the main purposes of this rule was to all...
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