Story perspectives

UK Inheritance Tax Reforms Proposed Amid Controversy

8/18/2025

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Summary

Story summary

Demos research indicates the UK raised £6.7bn from inheritance taxes in 2022, less than most G7 nations.
Chancellor Rachel Reeves is urged to reform inheritance tax while protecting first-time homebuyers.
Proposed reforms suggest taxing gifts based on the recipient's income and imposing a cap on lifetime gifts.
Critics warn that new taxes may disproportionately affect unmarried couples and families with young children.
The Treasury asserts that most estates will remain exempt from inheritance tax.

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Story summary

Demos research indicates the UK raised £6.7bn from inheritance taxes in 2022, less than most G7 nations.
Chancellor Rachel Reeves is urged to reform inheritance tax while protecting first-time homebuyers.
Proposed reforms suggest taxing gifts based on the recipient's income and imposing a cap on lifetime gifts.
Critics warn that new taxes may disproportionately affect unmarried couples and families with young children.
The Treasury asserts that most estates will remain exempt from inheritance tax.