Reeves says rulings on tax must wait for Budget amid inheritance tax speculation

Independent

2 days ago

Rachel Reeves has said that decisions around taxes will have to wait for the autumn Budget, amid reports that the Treasury is looking to raise more money from inheritance tax.
The Chancellor told reporters that decisions will be made 'in the round' and her priority 'is to get our economy firing off all cylinders'.
Earlier this week, the Guardian reported that officials are examining whether tightening rules around the gifting of assets and money could help address the UK's multi-billion-pound fiscal shortfall.
Government U-turns over winter fuel payments and welfare reform have left Chancellor Rachel Reeves with a multibillion-pound spending gap to fill.Asked about the reports on Thursday, Ms Reeves said: 'Any decision around taxation is a … decision for the Budget, and I'll make those announcements.
'We haven't even set the date yet for the Budget, but the key focus of the Budget is going to be to build on numbers that we've seen today to boost productivity and growth and prosperity all across the country.
'That is my number one priority as Chancellor, to get our economy firing off all cylinders so that working people in all parts of the country will feel the benefits of that economic growth.'
Pushed on whether taxes will have to increase in the autumn, Ms Reeves added: 'We'll wait for the official forecast from the Office of Budget Responsibility, and we'll make those decisions in the round.'
Among the reported inheritance tax measures under consideration is a potential cap on lifetime gifts, part of a broader review into how assets can be transferred before death to minimise inheritance tax liabilities.
Under current UK rules, gifts made more than seven years before a person's death are exempt from inheritance tax.
Gifts made between three and seven years prior are taxed on a sliding scale, depending on their value and the total estate.
The Chancellor was speaking as new official figures show that the UK economy slowed in the second quarter of this year amid pressure from tariff uncertainty and tax increases.
The Office for National Statistics (ONS) said gross domestic product (GDP) grew by 0.3% for the quarter after 0.7% growth in the first three months of the year.
However, the figure was stronger than the 0.1% level widely expected by economists after an uptick in activity in June and revised data for earlier in the quarter.