In a move that will please many traditional Conservative voters, Mr Osborne said that the Inheritance Tax (IHT) threshold would be increased. This will allow £1million to be passed on tax-free and “end the levy on family homes.”
Elsewhere, mortgage interest tax relief is to be limited on buy-to-let, which Mr Osborne hopes will “level the playing field” in the property market.
The Chancellor said the Government would also press ahead with election pledges to increase the tax-free personal allowance to £11,000 from next year. While the threshold for the higher rate of income tax is also set to increase to £43,000.
However, Mr Osborne resisted calls from many in his own party to reduce the top rate of income tax.
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