Inheritance assets tax plan scrapped

The chancellor has scrapped plans to tax assets left in trust in wills, the government has announced.

The Treasury said that spouses left money in trust will not have to pay inheritance tax on the death of a partner.

Lawyers had warned that millions of wills would have to be changed had the plan gone ahead. Only people who inherit between 18 and 25 years old will now be liable.

"Solicitors will welcome the fact that many millions of their clients will not now have to go through the expense and trouble of having their will reviewed," said Law Society president Kevin Martin.

"We are particularly pleased that spouse exemption will no longer be lost, something of concern to those in second marriages and those who wish to comply with Sharia law.

"The government is also taking a much more sensible line on will trusts vesting assets to children between the ages of 18 and 25.

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