Keir Starmer ‘plans rise in inheritance tax’ to ease debt crisis
Treasury looks at inheritance tax ahead of autumn budget
- The Treasury is reportedly considering tightening inheritance tax rules to address a £50bn shortfall in public finances.
- Proposed measures include scrapping the 'seven-year rule' for gifts and introducing a potential lifetime cap on gifts to limit pre-death asset transfers.
- Inheritance tax, which applies to estates worth more than £325,000, generated a record £6.7bn in 2022-2023 and is seen by some as a de facto wealth tax.
- The move comes amid pressure on Rachel Reeves to find solutions for a projected £41.2bn shortfall by 2029-2030, with calls for a broader wealth tax.
- Despite suggestions for wealth taxes from some Labour figures, the Treasury's official stance is to focus on economic growth and avoid raising income tax, National Insurance, or VAT.