Inheritance tax could change for siblings

Elderly siblings who have lived together for a long time could soon get the same protections from inheritance tax as married couples and civil partners.

Labour MP Frank Field has proposed an amendment to the Finance Bill going through parliament, which would give siblings who had lived together for ten years or more the same protection afforded to married couples and partners.

Field's decision to give co-habiting siblings this protection follows the case of two sisters who failed to challenge Britain's inheritance tax using the European Court of Human rights.

The sisters, Joyce and Sybil Burden, are 90 and 82. They have lived together all their lives in a home they own jointly.

Unless a change is made to existing law, when one sister dies, the other would be expected to pay 40% of the value of her portion of the estate.

Field has also added an amendment to the Bill calling for guarantees that the 1.1 million people who lost money under new tax reforms were compensated.