Inheritance tax threat
Writing in the Sunday Times (Money, p2), Kathryn Cooper criticises the imminent changes to inheritance tax rules which mean that over 30,000 families who have set up complex trusts will face the stark choice of paying an annual penalty of GBP20,000 or leaving their heirs to pay the IHT they have tried to avoid. "The government likes to portray people who try to shelter their family homes from death duties as greedy tax evaders. But many are just ordinary people capitulated into the inheritance-tax net by the relentless rise in house prices. It is only natural that they want to pass some of this wealth on to their heirs free of IHT through trusts."