The government would not reveal whether rumoured cuts to inheritance tax were on the cards, saying any changes to the tax system would be set out in the Budget.
In a commons debate last week (January 17) Nigel Huddleson, financial secretary to the Treasury, stressed that any changes to the tax system would be announced in the Budget on March 6.
Rumours that Jeremy Hunt would cut inheritance tax swirled ahead of the Autumn Statement but were not announced.
Many are now predicting changes could be on the cards this spring instead.
Huddleson told MPs: “Everybody knows, and the government certainly recognise, that individuals do work hard to build up assets over their lives, and it is a very human instinct to want to pass that on to their loved ones, when they pass away.
“Yes, there has recently been a great deal of speculation in the media and on opposition benches about potential future changes to inheritance tax.
“The budget is on March 6, when the Chancellor of the Exchequer will set out any changes to the tax system in the normal way.
“There is a great deal of speculation and it would be inappropriate for me to comment.”
Thresholds
During the debate, Conservative MP Peter Gibson said although more families have been brought in the scope of inheritance tax as house values have increased, much of the impact can be avoided through "proper planning and structures".
He added a suggestion that equalising the nil-rate band, which has been at £325,000 since 2009, could be passed on to direct descendants free of inheritance tax.
Gibson said: "A number of years ago, additional nil-rate bands were introduced to enable a joint estate to leave up to £1mn free of inheritance tax.
"However, that privilege only extends to those who have children, either naturally or by adoption.
"It seems unfair that those who have children can be given a significant tax advantage that does not benefit those who either do not choose to have children or are unable to have children.
"To my mind, a much fairer approach would be to equalise the inheritance tax threshold at £500,000 for everyone, enabling even childless couples to leave an estate of up to £1mn."
His suggestion was supported by fellow Tory MP, Ranil Jayawardena, who said lifting thresholds could have positive impacts on growing the economy.
Labour MP Grahame Morris questioned whether changing the thresholds for inheritance tax would actually impact many UK households.
He said: "Let us not lose sight of the fact that currently only 5 per cent of people pay inheritance tax. That means that 95 per cent do not pay it.
"If we are talking about fairness and the type of society that we want to create, we should look at the implications of either abolishing or providing further concessions to those currently liable for inheritance tax."
Fellow Labour MP Ian Levery said changes to inheritance tax would simply be a "pre-election giveaway".
