Prime Minister David Cameron says the Conservative manifesto for the 2015 general election will propose raising the inheritance tax threshold.
Speaking to the Saga Group today on pensions reforms, Cameron was asked whether the party would repeat its 2010 pledge to increase the inheritance tax threshold to £1m.
Cameron said: ”The ambition is still there, I would like to go further as it’s something that didn’t make it into the coalition agreement. It’s something we will address in our manifesto.
”Would I like to go further in future? Yes I would, I believe in people being able to pass money down through the generations and through their children. You build a better society that way.
”We need caps and limits but generally speaking we should be encouraging people to pass things on to their children.”
The current inheritance tax level is £325,000 and has been frozen since 2010 with coalition plans to keep it frozen until 2018.
Since 2007 married couples and civil partners can effectively increase the threshold to £650,000. Their executors or personal representatives must transfer the first spouse’s unused IHT levels to the second spouse when they die.
In his speech Cameron also responded to questions about last week’s pension reform news. He said: “This is about our values. It’s about backing those who work hard, save and do the right thing. And it’s about saying that the best people to look after their money are those who earned it in the first place.
“This is an historic change – the biggest revolution in pensions and savings for 100 years – and I’m proud the Conservatives have delivered it.”
Shadow Work and Pensions Secretary Rachel Reeves says Labour backs the reforms but wants the Government to “go further”.
However, key Labour figures such as ex-Tony Blair political secretary John McTernan and shadow cabinet minister Tom Watson have strongly opposed the changes.
Cameron also hinted he would keep universal pensioner benefits such as winter fuel allowance after 2015.