Legal & General believes that, on Budget Day (March 24th), the Chancellor will have no choice but to borrow more or increase taxes in order to meet the Prime Minister’s spending promises, and property taxes may well be hiked as a result.

L&G’s head of tax and estate planning Mark Green says:

"We all know we are borrowed up to the hilt. There's no reason why he wouldn't up Capital Gains Tax (CGT) from 18%, and even align it with income tax at 40 or 50%," he says.

In a speech in Canary Wharf yesterday morning, Gordon Brown asked:

"Do we undermine our frontline public services...or instead reduce the deficit by taking tough and fair decisions on tax and spending?"

Elsewhere, he explicitly mentioned inheritance tax (IHT) as a target for Government fundraising.

"It simply does not make any sense to me to cut tax credits for one million and a half middle class families on modest incomes - while at the same time proposing massive inheritance tax cuts worth £200,000 to a handful of estates," he said.

Green warns that attempts to restrict IHT planning are getting more "aggressive”.

In December's Pre-Budget Report, the Chancellor froze the IHT threshold for 2010/11 at £325,000 for individuals and £650,000 for married couples and civil partners. The threshold had been due to rise to £350,000 for a single person.

At the time, Darling said fewer than 3% of estates would pay inheritance tax.

"IHT and CGT have not traditionally raised much revenue but with lower levels of corporation and income taxes due to higher unemployment, now every penny counts," says Green.

"The Government is getting quite aggressive with tax avoidance schemes, especially discretionary trusts."

Green also believes that Stamp Duty may increase.

Stamp duty is currently payable at 1% on properties bought for £125,000 to £249,999, 3% from £250,000 to £499,999 and 4% on properties over £500,000.

"But whether they come now or later, from Labour or the Tories, taxes will increase. It is just a case of by how many percentage points," he warns