The inheritance tax con

By Fraser Nelson
Here’s the weasel. The Inheritance Tax “reduction” is a canard. Anyone with financial acumen (or a lawyer) will not benefit at all. KPMG have just been on the phone explaining it all to me and explain it here. “This change, although likely to grab headlines, is in practice only giving to most people what they already have,” says Carolyn Steppler, its tax director. Why? At present, couples can take out a zero-rate Discretionary Trust which in practise pools their inheritance tax allowances. Only those who have not availed themselves of this would be helped by today’s announcement. Yet Brown estimates this will cost him £1.4 billion – I suspect this figure is designed to shrink rapidly. Is it impossible for this government to give a Budget without trying to fool the media in one way or another? Old habits die hard.