In the small print of Gordon Brown's 2005 pre-budget report was an alteration to the payment of inheritance tax.
Payments on account, a familiar feature of self-assessment, are to be incorporated into the new structure.
The result will be that individuals will need to pay towards their anticipated inheritance tax bill prior to their demise.
When challenged about this in the House of Commons, Gordon Brown indicated the following:-
- It is unrelated to the gargantuan current account deficit
- It is clear that the liability will crystallise eventually and the burden will be softened by paying towards it at an earlier point in time
- It is only fair that those intending to die make a fair contribution to the NHS which will attempt to revive them
To upproarious applause from the Labour backbenchers, Mr Brown added that: "With this new structure we will reward those who accumulate large sums of money in their lifetime by assisting them in spending it."
It is understood that under the new regime, penalties will apply to those who fail to live to the anticipated life expectancy which the government actuary accords to persons with their circumstances. Interest will be charged on missed instalments and will be offset against the estate which is liable to be distributed to beneficiaries.