This is good news for people owning a house or flat who have children. They get an extra £100,000 on their inheritance tax free allowance making a total of £425,000 and this is increasing each tax year to 2020 when it will be £500,000 making a total of £1 million for married couples and civil partners. But it clearly discriminates against those without children. The rules are also extremely complex, in particular, when they try to deal with someone who has sold his or her house and downsized.
Good taxes are simple and easy to administer. Many people wonder why the inheritance tax free allowance was simply not increased to £500,000.