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UK Wealthy Exploit Tax Loophole Before Reforms Hit

7/27/2025

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Summary

Story summary

Wealthy families in the UK are seizing a lucrative tax loophole, with "gifts out of surplus income" skyrocketing from £52 million to £144 million in just a year. This rule permits unlimited gifts free from inheritance tax, yet only 400 estates took advantage in 2023-24. With impending reforms on the horizon, families are racing against time to secure their wealth.

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Story summary

Wealthy families in the UK are seizing a lucrative tax loophole, with "gifts out of surplus income" skyrocketing from £52 million to £144 million in just a year. This rule permits unlimited gifts free from inheritance tax, yet only 400 estates took advantage in 2023-24. With impending reforms on the horizon, families are racing against time to secure their wealth.