Treasury ‘considers inheritance tax reforms’ to fill £50bn spending gap in budget
The Treasury wants to collect more money by squeezing the rules around the inheritance tax.
In the midst of the increasing pressure on the situation of the financial situation before the autumn budget of the UK, the chancellery needs to appeal to a black hole left by the labor, higher borrowing and stagnant economic growth.
Economists warned Ms. Reeves that they should increase taxes or tear the flagship debt rules to fill the lack of 50 billion pounds in public finance.
According to A report In Guardian, the Treasury is now looking at options for inheritance tax, such as changing rules to restrict the gift of money and assets.
In accordance with the existing rules, an unlimited amount of money and assets can be given to relatives and friends who avoid inheritance tax, but they are presented at least seven years before the charitable death.
The money given less than three years is taxed at the full inheritance tax rate of 40 percent, while the gifts given between seven and three years have a “conical aid” tax between eight and 32 percent.
Guardian reported that the Treasury thought of a lifelong limit to limit the amount of money that an individual can donate outside the inheritance tax, and also reviewed the rules around the conical rate.
In a source, he told the newspaper, ız We should find ways to better benefit from the heritage of what you can contribute more by storing too much in assets such as houses that have opened value, ”he said.
“It is difficult to ensure that these taxes do not result in gaps that weaken their objectives. But we are trying to find out which income can be increased and how it will make it a fair approach.”
However, it was reported that no high -level interviews were made about the inheritance tax and no decision was taken.
Reeves already broke a record of £ 6.7 billion in 2022-2023, while Reeves already income tax, national insurance and VAT increases, and inheritance tax.
However, the latest analyzes showing that rich investors have left the UK due to measures such as the abolition of domestic status caused irritability.
A Treasury spokesman said: “As mentioned in the change plan, the best way to strengthen public finances is to enlarge the economy. This is our focus. The changes in tax and expenditure policy is not the only way to see the economy in our planning reforms expected to grow £ 6.8 billion and to reduce £ 3,4 billion.
“For employees, we are determined to keep taxes as low as possible, so we have protected the salaries of employees in the budget of autumn and promise not to raise basic, higher or additional income tax, employee national insurance or VAT rates.”
