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BUDGET: IHT threshold to £350,000 by 2010

Chancellor Gordon Brown has announced the inheritance tax threshold will be increased from £285,000 this year to £350,000 by 2010.

He says this will mean 94 per cent of estates will be exempt from IHT.

Brown also said the capital gains tax allowance for individuals will increase from £8,800 to £9,200 in the next financial year.

For families, this exemption limit will double to £18,400.

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