Darling had been widely expected to raise IHT in order to meet the Prime Minister’s spending programme.
In his December Pre-Budget Report (PBR), Darling announced he would freeze IHT thresholds for the 2010-11 tax year, with the zero-rate band remaining at £325,000 per person from April (£650,000 for couples). At the time, Darling said fewer than 3% of estates would pay IHT.