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Union Labels SPD Inheritance Tax Overhaul 'Dead on Arrival'

Conservatives call the timing misguided as the SPD floated its tax blueprint before a constitutional ruling.

Overview

  • SPD proposes a €1 million lifetime personal allowance, a €5 million exemption for business transfers, progressive rates, and tax-free owner-occupied inherited homes.
  • The plan would allow heirs of companies to spread payments over up to 20 years, framed by the SPD as easing succession for smaller firms.
  • CDU figures Fritz Güntzler and Christian von Stetten declared the concept already failed, citing the government's view that current law is constitutional.
  • Unionsfraktionschef Jens Spahn acknowledged concerns about loopholes yet argued the timing is wrong and warned the treatment of business assets risks substance losses.
  • SPD parliamentary leader Matthias Miersch defended the proposal, saying most heirs would be relieved and about 85% of companies would be exempt, as business groups and analysts questioned impacts on the Mittelstand and a pending court decision loomed.