Treasury Considers Inheritance Tax Raid in Budget
13th August 2025
Treasury officials are drawing up options to raise more money from inheritance tax, it was reported, as Rachel Reeves seeks extra cash in the autumn budget.
The chancellor’s tax raising plans are at an early stage but she is widely expected to need to find tens of billions extra to deal with rising costs and gloomier economic forecast.
Officials are looking at options such as tightening rules that allow people to give away assets before they die, according to The Guardian. This could include a lifetime cap on money that can be given away, or adjustments to the rate at which inheritance tax liability tapers in the seven years between a gift and death.
Governments, inevitably faced with problems due to spending more money than is coming in, are always looking for new ‘sources of revenue’ (i.e. deep pockets to pick). Spending less is so far off the table that it’s not even mentioned, by anybody.
UPDATE: Families face fresh inheritance tax grab (The Telegraph)