Chancellor Alistair Darling has doubled the value of assets which couples can leave behind when they die without incurring inheritance tax.

Married couples and civil partners now have a combined threshold of £600,000, rising to £700,000 by 2010.

The move came a week after shadow chancellor George Osborne said only estates worth more than £1m would be taxed under a Conservative government.

But analysts said few would benefit from the changes to inheritance tax.

Tax director at KPMG, Carolyn Steppler, said that the change "although likely to grab headlines, is in practice only giving to most people what they already have".

Backdated allowances

Inheritance tax was previously charged at 40% on all assets worth more than £300,000 which are left behind when someone dies - though assets left to a spouse are exempt from the tax.

Excellent News - Long awaited!

Share This