Top earners' pension tax relief cut to pay for Tories' IHT plans

Conservative party plans to remove family homes worth up to £1m from inheritance tax (IHT) will be paid for by cutting pension tax relief for those earning over £150,000.

The pre-election pledge - revealed by the Guardian newspaper in March - would see David Cameron's party introduce a new transferable 'family home allowance' of £175,000 per person. For a married couple, who already each benefit from a £325,000 nil rate band, this will effectively increase the IHT threshold to £1m.  This new allowance will be tapered away from those leaving more than £2m, with the intention that those leaving more than £2.35m will not benefit from the new allowance. The move would cost £1bn and would go "disproportionately to those towards the top of the income dist...