THE GOVERNMENT has been given a bloody nose from the Treasury Select Committee and been challenged to defend Budget proposals to extend inheritance tax, according to the Daily Telegraph.
A report published by the cross-party group of MPs is said to corroborate fears as many as one million people could be affected by the extension to IHT, so the Treasury must now show MPs how it arrived at figures suggesting only 20,000 would pay more tax. The Treasury select committee report on the 2006 Budget states: "With respect to the new rules on the tax treatment of accumulation and maintenance (A&M) and interest in possession trusts, we are concerned that estimates of the expected numbers of affected trusts vary so widely between Government and practitioners. "If the Government's...
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