Potential Changes and Impacts
Chancellor Rachel Reeves is exploring alterations to inheritance tax (IHT), including possibly raising the rate or lowering thresholds, aiming to generate up to £35 billion for the upcoming Budget.
These reforms could significantly affect middle-class homeowners and average families, potentially dragging more into the IHT net due to rising asset values and frozen thresholds since 2009.
Criticisms and Concerns
Critics argue that changes could unfairly target ordinary families while barely affecting the ultra-wealthy, who might exploit loopholes to avoid taxes.
The proposal has faced backlash for potentially being "lazy policymaking," with concerns that it could be a "tax grab" impacting those who have worked hard to provide for their heirs.