Darling freezes inheritance tax

Date: 29th March 2010

It has emerged that during the recent Budget, Alistair Darling announced a freeze on the rate for anyone bequeathing assets worth more than £325,000.

Inflationary rises mean the minimum threshold should have increased to around £350,000 by 2015.

By way of contrast the Conservative Party has vowed to scrap the tax altogether for those who inherit assets of less than £1 million.

The Telegraph's Robert Winnett, said: "The freezing of inheritance tax is likely to prove unpopular in middle England where the rise in house prices over the past decade has left hundreds of thousands of people facing large bills.

"The tax is regarded as one of the most unfair because it penalises those who have saved throughout their lives and wish to pass on assets."

Mr Darling also confirmed that next month will see the introduction of the 50 per cent income tax rate for those earning in excess of £150,000.