Reeves inheritance raid would do little to bolster UK finances, warn economists
Reeves inheritance raid would do little to bolster UK finances, warn economists
Posted by theipaper
Reeves inheritance raid would do little to bolster UK finances, warn economists
Reeves inheritance raid would do little to bolster UK finances, warn economists
Posted by theipaper
17 comments
Treasury plans to tweak inheritance tax rules in the autumn budget would do little to bolster the country’s finances, economists have said.
[Rachel Reeves is reportedly looking at tightening rules](https://inews.co.uk/news/politics/reeves-stealth-taxes-sin-taxes-budget-economists-predict-3855762?ico=in-line_link) around the gifting of assets and money in a bid to help fill the UK’s multi-billion-pound fiscal shortfall.
The Chancellor is [facing having to further raise taxes ](https://inews.co.uk/news/politics/growth-inflation-warning-pressure-reeves-options-rated-3523509?srsltid=AfmBOooSPYtNS58ySZ2w0hlDf4lQimgvA9SHF5vDRIDa1SV8gptISsWH&ico=in-line_link)in the forthcoming Budget following a series of expensive [u-turns on winter fuel allowance and welfare spending.](https://inews.co.uk/news/politics/benefits-reform-farce-leaves-mps-bitter-and-trouble-ahead-for-starmer-3781447?srsltid=AfmBOopIzJPJI_mkCfUKMlAX424nU0_EsM3oTxiwgjxqGwW08xP_MKt7&ico=in-line_link)
According to reports in *The Guardian*, Reeves has instructed officials to look at a potential cap on lifetime gifts, part of a broader review into how assets can be transferred before death to minimise inheritance tax liabilities.
But economists have cast doubt on how much the measure would raise, amid suggestions from experts that the Chancellor will need to raise at least £20bn and as much as £50bn by the Budget.
Tom Goddard, senior associate at accountancy firm Blick Rothenberg, said reforming inheritance tax (IHT) was unlikely to cover much of the hole in the public finances facing Reeves.
Mr Goddard believes Reeves would only be able to raise an extra £3bn through inheritance tax reform.
“IHT generates around £8bn per year. Given the latest deficit figures we are seeing are [at the extreme end] around £50bn, I don’t think tampering with IHT would be a particularly fruitful endeavour for her,” he said.
He said reforming gifting – known as potentially exempt transfers (PETs) – would be unlikely to impact many who pay IHT.
at this point nothing they will do could.
Rachel Reeves needs to fuck off and leave us alone. She needs to look at spending not taxing.
I’ve heard it said that if you laid all the economists in the world end to end, they still wouldn’t reach a conclusion.
They attack and destroy everything. Banana republic style
Short term thinking as per usual. Raid away if that’s what you want, the next generation won’t have anything to raid further down the line…
Maybe try curbing unnecessary spending!
Cause its not about the economy its a gift to the left of her party. Its purely part of the leftist politics of envy.
Got to say screw doing her job.
Nobody wants to lay more tax.
Nobody wants to give up anything.
Everybody wants more free stuff.
Fracked if she does fracked of she does’t
The same was said about the IHT on businesses (including farms).
A better alternative that would raise more money was even proposed by the NFU.
She didn’t listen then and she won’t listen now.
This will really hurt people in the southeast (where you can’t buy a flat for the threshold as it is) and leave wealthy northerners with big houses untouched.
Labour’s chancellor is more interested in performative politics for her voter base than the country’s economy.
Utter disgrace.
The number of people here bitching and moaning about a tax that is highly unlikely to actually affect them. currently this tax impacts about 4% of people.
Usually those with about £1M in their estate.
How does she still have a job? Wasn’t it proven that she lied on her CV?
Do the asset lax! 2% on wealth more than 10 million.
The fucking idiots are immediately crying about this even though it’s a reasonable ask to get the richest to pay a bit more. Hope they never consider themselves patriotic.
It’s about class warfare not economics
So if it doesn’t raise much surely it doesn’t hurt much either?
Like there is no magic makes lots of money but cost no one option.
All it’ll do is harm generational wealth.
Can someone give me a background on this woman? I’m not British but to me she seems like one of the most incompetent finance ministers in all of the world at the moment, which is saying something.
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