The Conservative party election manifesto to be launched this week is expected to advocate ending inheritance tax on homes which sell for £1m or under.
At present, an estate worth £1 million is liable for an inheritance tax bill of £140,000; from 2017 the tax bill will be zero if the Conservatives are elected and stick to their promise.
The £1 billion cost of the policy will be funded by reducing tax relief on the pension contributions of people earning more than £150,000.
Over the weekend the Liberal Democrats also unveiled a key housing policy, proposing a Help to Rent scheme aimed at 18 to 30 year olds who could borrow from the government up to £1,500 each - and £2,000 in London - to use as a deposit on rented accommodation. The loans would be repaid over a period of either 12 or 24 months.
The Liberal Democrats claim many young people find it hard or impossible to afford rental deposits without parental help. The party says the average rental deposit in the UK is £1,200, amounting to about six weeks of rent.
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Comments
A policy that won't affect 90% of people and will only benefit the richest. In other words, a typical Tory move.