2 May 2006

Following the Treasury's proposals to extend the Inheritance Tax net to cover certain types of trusts, new research commissioned by Brewin Dolphin shows that almost two thirds (65%) of Labour voters believe it is unfair of the Government to introduce a retrospective change to the law that would reduce people's tax savings.

The study, conducted by ICM this week, reveals that the majority (51%) of respondents – and 44% of Labour voters - believe that people faced with having to spend an estimated £340 each rewriting their wills as a result of the proposed changes will be put off voting Labour at the next election.

The overwhelming majority of those interviewed also disagree with the Government's proposal to reduce the age at which children can inherit trust assets from age years 25 to 18. Indeed, 79% of people believe it would be better for children to receive potentially large sums of money from parents when they are 25, rather than 18. Surprisingly, this figure rises to 85% amongst Labour Party voters.

Brewin Dolphin estimates that as many as a third of its clients – around 35,000 – could be affected by the proposed changes to trusts. Many of the firm's 35 offices have received calls from concerned clients and as a result, the Directors of nearly all Brewin Dolphin's branches have written to their local MPs to protest on their behalf.

Charlotte Black, Marketing Director of Brewin Dolphin said,

“On behalf of our clients we are urging the Chancellor to reconsider his proposals which are being introduced without any prior consultation with professional advisers. Indeed, according to the Law Society and the Society of Trust and Estate Practitioners, these new measures will cost taxpayers far more in fees than they will yield to the Treasury by a ratio of 20:1. These proposals will force people either to rearrange the legitimate steps they have taken to protect their children's inheritance, or they will be forced to give away capital sums to teenagers.”

1. ICM Research interviewed a random sample of 1004 adults aged 18+ by telephone between 26-27 April 2006. Interviews were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.co.uk