HMRC to change rules for those who gift family members money

A warning has been sounded regarding inheritance tax, as it's believed that Rachel Reeves from the Labour Party government may target a "little-known" exemption that allows UK households to gift unlimited amounts tax-free.

The Chancellor is reportedly considering changes to an obscure exemption that currently permits individuals to transfer unlimited wealth without incurring tax. Regular gifts of surplus income can be immediately exempt from IHT.

While gifts between spouses are typically exempt, there is a limited spousal exemption for gifts to a spouse who has resided in the UK for less than 10 out of the previous 20 tax years.

Under HMRC rules, gifts must form part of normal expenditure and must originate from income. The

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