UK Prime Minister Theresa May has confirmed that the country will allow a family to pass on the highest tax exemption of £3m to their children.
The ruling will come into force on October 2, after an appeal to the Supreme Court.
May said on Wednesday that a new exemption will be created for two people with a combined estate value of £10m, which is around £2.8m for a single person.
“We have a tax system that’s unfair and we need to get rid of it,” she said in a press conference.
“It will go up to £3 million, which would be a record high.”
Theresa May has told the BBC that a tax exemption for a family with a total of £1m will be introduced in the coming months.
She said the new tax exemption will allow people with significant assets to pass the “tax burden” to their offspring.
The government said in March that it will begin to increase the amount of tax a family can pay.
The Government has also proposed a three-tier system for the estate taxes, with a tax of 25% for the highest value, 25% on the first £50,000 and 25% in the last £1 million.
The top rate will be raised to 39.6% from 35%.
“The tax system is rigged against the wealthiest,” the Prime Minister said.
“I will take every possible step to remove it.”
The Prime Minister also said the government would introduce an estate tax credit, which will allow the family to deduct up to 10% of the tax bill for their children from the tax.
The £3million is part of a wider package to help people with estates.
On Wednesday, the Supreme Courts ruled that the tax exemption is “entirely arbitrary”.
May said that while the UK’s estate tax is unfair, she does not think it is discriminatory.
She said she would continue to work with the UK Government to reduce the amount people pay and that the new exemption would help to reduce inequality in society.
In the past, the UK has had a similar system for children, where their parents are taxed at a higher rate.
May, who was a minister under the Labour government, said that there are now “a lot of people who have inherited from their parents that don’t even have to pay any inheritance tax at all”.
(Reuters) Theresa Will is facing criticism for claiming that her country would allow a child of £20m to pass through its estate tax system.
In a speech to parliament in March, she said that the estate levy would be abolished in the UK and that a family would not be able to pass their inheritance tax on to their child.
The prime minister said that families could pass on their tax bills to their two children, and said that “every family will be able” to do so.
“I do believe that the only way we can bring down inequality is if we can make sure that we’re bringing down inequality across the country,” she told MPs.
(Reuters/Press Association Images) In her speech to MPs, the Prime Minster said that she would be seeking a royal prerogative to allow the tax to be passed on to the next generation, in a bid to address the “hidden inequality” between rich and poor in society, as well as to boost equality for all.
“The way we solve that is to make sure we’re giving everyone a fair chance,” she added.
“And I believe that there is one country in the world that can help us do that, because it’s one of the richest countries in the western world.”