Abacus Daily Debt News

Inheritance tax to hurt debtors?

Millions of people may face increasing debt management problems, as it has been revealed that death duties could climb to £60,000 under a Labour government.

This is according to the Conservatives, who warned the middle classes that they could suffer this hike in taxes, although Alistair Darling has stated repeatedly that only three per cent will be affected by this, the Daily Mail reports.

Commenting after figures from the Office for National Statistics revealed that 4.3 million would face paying this tax if they died, the shadow chief secretary to the Treasury Philip Hammond observed that "the real victims … are middle-income families".

"If you aspire to save for your future and pass something on to your children then Labour is no longer the party for you," he said.

This comes after Martin Bamford of Informed Choice recently noted that Britain’s middle classes will be the most affected by the Pre-Budget Report.

He predicted a rise in income tax bills in 2010, as a result of earnings inflation.

By Sarah Adie