NOT good enough. That was the verdict of York estate agent Kevin Hollinrake on the rise in the inheritance tax threshold.

Mr Hollinrake, joint chief executive of Hunters Property Group, said the increase would be surpassed by the rise in property prices, meaning yet more people would end up paying the controversial tax.

He said: "It's risen from £275,000 to £325,000 over four years. Any increase is welcome, but I think that just reflects inflation over the next four years.

"What I do not think many people will understand is why we have inheritance tax at all, and certainly at that level. Inheritance tax affects most of us. Our property has been paid for all our life, and then we pass it on and they get a 40 per cent tax rise on it. It's a very inequitable tax.

"Any increase in the threshold is welcome, but assuming property prices increase by five per cent or more over the next four years, it's not going to keep pace."

He added: "The threshold should be much higher - it probably should be nearer £500,000.

"Despite the increase, much more people will be affected by inheritance tax."

Updated: 10:57 Thursday, March 23, 2006