Reeves' spring surprise is her gift of the grab

CHANCELLOR Rachel Reeves may resist the temptation to hike taxes in tomorrow’s Spring Statement but she may well still strike another blow at our family inheritances.

- By Harvey Jones

Experts fear she could tweak gifting rules, making it even harder to pass on wealth without incurring inheritance tax (IHT).

This would be yet another blow to hardworking families as IHT bills are already at record highs and will climb higher still following Reeves's decision to impose IHT on unused pension pots from April 2027.

Jason Hollands, managing director at Evelyn Partners, said the system of gifting allowances is complex and vulnerable to change. “While headline tax changes are off the cards, watch out for the small print."

Often dubbed "simplification" proposals, this could include an overhaul of the lifetime gifting regime, he said. “The Government is prepared to tighten up on taxation of inheritances, following Budget moves to charge IHT on pensions and limit relief for business and farming families.”