Rachel Reeves ‘pushing ahead with tax raid’ | U.Ok.Finance News
Rachel Reeves is reportedly set to push ahead with a new tax raid regardless of receipts for a levy she is believed to need to tweak being set to succeed in a big landmark whole. Inheritance tax (IHT) receipts are on target to exceed £9 billion by the tip of the present tax yr, specialists at Irwin Mitchell have predicted. Specialists add that HMRC figures level to lots of more estates being taxed, and that the £10 billion milestone appears to be “within easy reach” for 2026/27.The latest figures show that IHT tax receipts in July 2025 had been the best month-to-month determine recorded, based on the firm, which takes the tax generated from the charge this yr to £3.1billion – a rise of 8% in comparison with the identical period 12 months in the past. Despite these hefty totals, it has been reported that the Treasury is seeking to raise more money from IHT, because the Government seeks to fill an estimated £50billion gap within the public funds following U-turns.Among the reported measures into account is a potential cap on lifetime presents, half of a broader review into how belongings might be transferred earlier than death to minimise inheritance tax liabilities.Under present UK guidelines, presents made more than seven years earlier than a individual’s death are exempt from IHT.Gifts made between three and 7 years prior are taxed on a sliding scale, relying on their worth and the whole property.Andrea Jones, accomplice and head of Irwin Mitchell’s Private Client Advisory staff, stated: “Today’s figure of £844m for IHT receipts is the highest monthly amount recorded.”It now looks likely that inheritance tax receipts will exceed £9 billion by the end of March 2026, and following the significant changes due to be introduced in 2026/27, I wouldn’t be surprised if the number is closer to £10billion 12 months later.”Ms Reeves stated earlier this month: “Any decision around taxation is a … decision for the Budget, and I’ll make those announcements.“We haven’t even set the date yet for the Budget, but the key focus of the Budget is going to be to build on numbers that we’ve seen today to boost productivity and growth and prosperity all across the country.“That is my number one priority as Chancellor, to get our economy firing off all cylinders so that working people in all parts of the country will feel the benefits of that economic growth.”Pushed on whether or not taxes should increase within the autumn, Ms Reeves added: “We’ll wait for the official forecast from the Office of Budget Responsibility, and we’ll make those decisions in the round.”
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