Pre-Budget Report 2009 - IHT headache returns

"The announcement that the chancellor is freezing the inheritance tax nil rate band at £325,000 means the IHT headache is returning for middle England householders".

 

Wednesday, 9 December 2009

David Kilshaw, head of Private Client at KPMG said:
"The announcement that the chancellor is freezing the inheritance tax nil rate band at £325,000 means the IHT headache is returning for middle England householders. Since 1997, the IHT starting point has increased by only 51 per cent compared with an increase in house prices of over 130 per cent for the UK as a whole.
"By freezing the higher rate tax band in 2012/13, this continues the trend of increasing the number who pay tax at 40 per cent. Another 70,000 people will now fall into this bracket raising £400 million, who will pay tax at 40 per cent.
"Since coming to power, Labour has nearly doubled the number of higher rate tax payers.”


Ends


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For further information please contact:

Judith Dow, KPMG Corporate Communications
Tel:  0207 694 8584 Mobile: 07786 197 718 Email: Judith.dow@kpmg.co.uk
KPMG Press Office: 0207 694 8773

www.kpmg.eu/pbr2009

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About KPMG: KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with 11,500 partners and staff.  The UK firm recorded a turnover of €2.2 billion in the year ended September 2008. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 148 countries and have more than 113,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. KPMG International provides no client services.