IHT 'should be maintained'

It is in the interest of the public to maintain inheritance tax (IHT) planning, even though politicians are competing for voters by offering increased tax-free allowances, it has been claimed.

Matthew Cox, an adviser from Skipton Financial Services, warned that there is a real danger people could forget that IHT planning still applies to them amid the various political promises being bandied about, according to CityWire.co.uk.

Shadow Chancellor George Osborne has pledge to raise the nil-rate band to £1 million per person, up from the current level of £312,000.

Mr Cox warned that many are already making dangerous assumptions that the Tories will win the next election and deliver on this promise.

He told the website: "We've seen a number of clients under the perception that they don't have to worry about it any more."

"It's very important that people don't take a 'wait and see' approach to IHT planning – there are too many uncertainties and too many hurdles."

The Shadow Chancellor's promise is part of a wider series of financial pledges by the Conservatives, who remain committed to meeting Labour's current spending plans until 2011, should they come to power.