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PBR: IHT threshold frozen at £325,000 until 2011

The Chancellor has frozen the inheritance tax threshold at £325,000 until 2011.

Speaking during his pre-Budget report today, the Chancellor Alistair Darling has announced plans to freeze the inheritance tax threshold at £325,000.

Darling said: “Mr Speaker, I believe it is right that parents should be able to pass on savings to their children.

“Before the financial crisis rocked the global economy, I enabled married couples to combine their inheritance tax allowances. And this will continue.

“I also said that allowances would rise to reflect inflation and the expected continued increase in house prices.

But he added: “I do not believe that raising this allowance can be a priority, given the impact of the downturn on the country’s finances.

“So I have decided to freeze the individual allowance at £325,000 for the next year.

“This will still mean that fewer than 3 per cent of estates will pay inheritance tax.”


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