Withers calls for tax waiver to help families of victims

The government should waive inheritance tax for families of the victims of the recent US terrorism attacks, City law firm Withers has said.In a letter to Prime Minister Tony Blair, partner Jeremy Arnold urged him to follow the US, where a Bill to waive estate tax - the US equivalent - for victims has been passed by the House of Representatives and is being considered by the Senate.He said: 'Under current legislation, UK inheritance tax exemption only applies to death in war on active service.

The victims of the terrorist attacks will therefore have to pay inheritance tax if they are domiciled in the UK, or have UK property.'Mr Arnold added in the light of the attacks, 'the government needs to consider whether such tax exemptions may be extended to victims of IRA attacks and terrorism generally'.