From Morningstar: 2024-09-26 06:23:00

Chancellor Rachel Reeves delivers a speech at the Labour Party conference, hinting at potential tax changes in the upcoming Budget, including Capital Gains Tax and Inheritance Tax. Despite public dislike, less than 5% of estates pay IHT, totaling £2.1 billion in 2024. Speculation abounds on potential changes to IHT allowances and exemptions in the Budget.

IHT remains a controversial tax, with little known about potential changes in the Budget. Only around 30,000 estates pay IHT, but this number is rising. Speculation points to possible changes in exemptions for AIM shares, pensions, and the ‘seven-year rule’ for gifts. The complexity of potential changes could impact financial planning strategies for individuals and families.

Proposed reforms to IHT have been ongoing, with past suggestions including lowering the IHT rate to 10% to address issues of intergenerational fairness. However, current Chancellor Rachel Reeves has not confirmed any specific changes to IHT in the upcoming Budget. With rising house prices and increasing numbers of estates paying IHT, reforms to the current system may be on the horizon.



Read more at Morningstar: Inheritance Tax: is Labour Planning a Stealth Raid…