Reeves Eyes Inheritance Tax Shake-Up Amid Growing £40B Budget Gap

Reeves Eyes Inheritance Tax Shake-Up Amid Growing £40B Budget Gap

Chancellor Rachel Reeves is preparing major inheritance tax and pension reforms to tackle a £40 billion budget shortfall. New proposals include capping lifetime gifts, tightening taper relief, and making unspent pensions subject to IHT from 2027 — changes aimed at boosting revenue without raising income tax, VAT, or National Insurance.