Inheritance tax 'unlikely to change' in Budget

Next month's Budget is unlikely to include any changes to the inheritance tax allowance for small businesses, according to an industry group.

The Chartered Institute of Taxation (CIOT) said that because the current system is "quite generous", the introduction of any inheritance tax changes by chancellor Alistair Darling in March would leave many business figures "very surprised".

Spokesperson for the CIOT Andrew Hubbard also said that because many small enterprises are run by families and often "pass through the generations", the reform of the capital gains tax system may not be "that relevant" to the tax planning of some business owners.

"Generally speaking, we would regard the current system for inheritance tax for small businesses as quite generous and we don't predict any changes there," Mr Hubbard commented.

However, he did warn non-domiciled small business owners that they may have to consider their position carefully in light of Mr Darling's proposed clampdown on 'non-dom' taxation.

Sky News recently stated that the chancellor will unveil his Budget next month in the midst of the UK's "gloomiest economic situation for more than a decade".