GUERNSEY’S trust industry should not be worried about proposals to change the UK’s inheritance tax laws. National newspapers recently highlighted a report by UK think tank The Institute for Public Policy Research, which has suggested that imposing a 50% inheritance tax on people with estates worth more than £763,000 would bring cuts for the middle classes.

Estates valued between £263,000 and £288,000 would be taxed at 22%, increasing to 40% up £763,000.

The extra £147m. raised annually could be used to help poor youngsters through extra funding of the Child Trust Fund.

The island is popular with wealthy individuals who use trusts and other financial products as part of their tax planning.

KPMG managing partner Jonathon Hooley did not see the report as anything about which the local finance industry should be worried.

‘It seemed as if the national newspapers focused on it, but perhaps that is because it is a quiet time for them,’ he said.

‘I was aware of the report, but I wouldn’t rate it until a government minister backs it.’

Downing Street has denied claims that it was involved in the 50-page report, although a Labour spokesman said it would be carefully studied.

Mr Hooley had not heard of the IPPR, which is an independent body funded by individuals, company and trade union donations.

Founded in 1988, it produces analysis, reports and publications and aims to prompt change, producing a fairer more inclusive and environmentally sustainable world.

‘Think tanks produce reports all the time and I think it would be wrong to attach too much importance to this,’ said Mr Hooley.