Chancellor Rachel Reeves has come under fire from financial advisers after reports suggested she may target tax-free family gifts in her latest inheritance tax (IHT) reforms.
Wealth managers and planners have branded the proposal “daft” and a “blatant tax grab” that risks punishing grandparents who financially support their children and grandchildren.
At present, individuals can give up to £3,000 a year in gifts tax-free, with additional exemptions for weddings and small gifts of up to £250 per person. Larger transfers can also fall outside IHT if the donor survives for seven years.
However, reports indicate that the Treasury is considering capping or tightening these rules as part of efforts to plug gaps in the public finances ahead of the Autumn Budget.
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