§ Mr. John TaylorTo ask the Chancellor of the Exchequer if he will take steps to mitigate the impact of inheritance tax on those estates which are predominantly comprised of the value of the deceased's family home. [8681]
§ Mr. Andrew SmithEven where property represents a high proportion of the total value, most estates also have sufficient liquid assets to satisfy all the inheritance tax which may be due. Executors can nevertheless defer payment of tax when a former home has not been sold by the time the tax on it would otherwise be due, if necessary by making instalments over as long as 10 years. Most eligible estates start in this way, but the overwhelming majority settle their tax before the 10 years is up, usually because the home is no longer in family use and has been sold.