A stark inheritance tax warning has been issued with Labour Chancellor Rachel Reeves reportedly preparing to target an exemption that permits UK families to transfer unlimited sums without tax implications.

The Chancellor is understood to be examining a lesser-known provision that enables individuals to pass on vast amounts of wealth whilst avoiding tax obligations. Routine gifts from surplus earnings can be instantly exempt from inheritance tax.

Transfers between married couples are typically exempt, though there exists a restricted spousal exemption for gifts to partners who have resided in the UK for fewer than 10 years within the preceding two decades.

Under HMRC regulations, gifts must constitute part of regular expenditure and originate from income. Tax authority guidance sti

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