🔍 **Potential Inheritance Tax Changes on the Horizon!**
Hey folks! With the UK facing a major fiscal gap, the Treasury is eyeing possible tweaks to inheritance tax. As we gear up for the autumn budget, some officials are considering tightening rules around gifting assets. This could mean changes to how much you can pass on without a tax hit. 🤔
Currently, gifts made over seven years before your death are tax-free. But what’s being considered? A possible cap on lifetime gifts! The idea is to bring in more revenue amidst current spending challenges, especially after recent welfare policy shifts.
Chancellor Rachel Reeves is in a tricky spot, trying to maintain fiscal balance while keeping election promises. A hefty £41.2 billion gap is predicted by 2029-30 if no action is taken. Does this mean higher taxes or spending cuts are on the way? Stay tuned as she navigates this fiscal “trilemma.” 💼
While there’s chatter about a wealth tax from some corners of the Labour Party, Reeves emphasises that taxes for working people won’t rise. However, this doesn’t rule out measures focusing on wealth, like potential inheritance tax adjustments.
Business Secretary Jonathan Reynolds chimed in, assuring folks there won’t be any drastic new taxes. While some countries, like Switzerland, manage without capital gains or inheritance tax, the UK is assessing its own path.
What do you think about these potential changes to inheritance tax rules? Is it time for an update, or should things remain as they are? Drop your thoughts below! 👇💬