Chancellor of the exchequer Alistair Darling has elaborated on the inheritance tax (IHT) policy announced in yesterday’s pre-Budget report.
Speaking on BBC radio 4’s ‘Today’ show, Mr Darling said that he believed it was right for couples to be able to benefit from one another’s allowances so that in the event of someone’s death, the widower or widow can use both allowances and reduce the amount of tax would otherwise have to pay.
The chancellor added that the Conservative policy regarding IHT – which would accrue funds from non-domiciled individuals – would be unable to raise the £3.5 billion that shadow chancellor George Osborne said it would.
"What we have tried to do on all taxes is to make sure they are fair and we have a balanced approach," he added.
In the pre-Budget report, Mr Darling announced the increase of the IHT threshold for couples to £600,000.