IHT named 'most unpopular'

Date: 20th February 2008

A new survey of business taxpayers has identified inheritance tax (IHT) as the most unpopular levy currently paid by UK companies.

The poll by accountancy firm MacIntyre Hudson found that 82 per cent of the nation's business owners believe IHT should be made a priority for reform, with many advocating a higher threshold, Moneymarketing.co.uk reports.

However, the survey also discovered support for Alistair Darling's plan to make IHT allowances transferable to the surviving partner if one spouse is to die, as over 90 per cent of respondents backed this idea.

Capital gains tax (CGT) and stamp duty were also shown to be widely unpopular in the business community, with 70 per cent voicing opposition to Mr Darling's new CGT regime.

Nigel May, tax principal at MacInyre Hudson, commented: "While the majority support the chancellor's decision to make the IHT allowance transferable between spouses upon death, the support for a higher threshold indicates that Darling needs to go much further."

The Chartered Institute of Taxation recently stated that it will be "very surprised" if any changes to the IHT system are introduced by the chancellor in next month's Budget.