29 November 1994  
IR4
                INHERITANCE TAX: THRESHOLD

The  Chancellor  proposes in his Budget  to  increase  the 
inheritance  tax  threshold for the tax  year  1995-96  
by pounds 4,000 to pounds 154,000.  The increase is in line with 
the rise in  the Retail Prices Index.

                     NOTES FOR EDITORS

1.   The threshold is automatically increased each year by reference 
to the Retail Prices Index unless the Chancellor proposes  otherwise.
The threshold was raised to pounds 150,000 in the tax year 1992-93 and has 
not been increased since.

2. Measured  against an indexed base the cost  of  this measure is 
nil. Against a non-indexed base the cost is pounds 15 million in 1995-96.

3.  As a result of indexation 1,000 fewer estates  will pay tax in
1995-96. The total number of taxpaying estates in  1995-6 is 
estimated at 20,000 with an estimated  yield of pounds 1,450 million.