In a move to tackle the UKs financial challenges Rachel Reeves‚ the British finance minister is planning to boost inheritance tax revenue in her upcoming budget presentation. The announcement‚ scheduled for Oct 30 2024 marks Reeves first fiscal statement since Labours victory in the polls roughly 3 months ago
The minister faces a tough balancing act: fixing a significant gap in the governments day-to-day budget while keeping promises not to raise main taxes for working people. To achieve this Reeves is considering changes to inheritance tax exemptions and reliefs (which currently affect only 4% of deaths)
Currently‚ inheritance tax is charged at 40% on estates valued above £325‚000 – a threshold that hasnt changed in about 15 years. The tax generates approximately £7.5 billion yearly for the government. Existing allowances include:
- Transfers of family homes to younger generations
- Business reliefs
- Agricultural reliefs
Reeves broader budget strategy reportedly involves tax increases and spending cuts totaling £40 billion. This approach aims to invest in services while stabilizing the countrys fiscal situation
The finance ministry has not yet commented on these reports. As the budget presentation approaches‚ all eyes will be on Rachel Reeves and her plans to navigate the UKs complex financial landscape