IHT rules 'unfair for ordinary people'

A grassroots campaign for lower taxation in Britain has slammed existing inheritance tax (IHT) legislation as being unfair.

The Taxpayers' Alliance has urged chancellor Gordon Brown to examine the tax closely before announcing his Budget next month.

Corin Taylor, head of research at the group, said: "With the Budget just a few weeks away, [Gordon Brown] should take a long hard look at this data and increase the extraordinarily low threshold for this iniquitous tax."

She added that "ordinary people" cannot afford highly-paid lawyers and accountants to minimise their IHT bills and are disproportionately affected by the tax, which is an unfair situation that should be altered.

The group also described the increase in the number of homes affected by the tax as "astonishing".

Accounting and tax advisory firm Vantis recently published methods of reducing IHT liability, including the use of child trust funds and small gifts.