Labour is considering replacing inheritance tax with a levy on cash and property given to individuals during their lifetimes, a move that could cost families thousands of pounds.
At the moment the system allows a parent to avoid tax on gifts to children as long as they are made more than seven years before the parent’s death.
A parent is also able to pass on a home with a value of up to £475,000 without paying inheritance tax, a sum that rises to £950,000 for married couples and civil partners.
The plans for the new levy are outlined in a report commissioned by Jeremy Corbyn, which proposes “radical changes to the way land is used and controlled in the UK”.
The proposals would slash the