Rachel Reeves’ inheritance tax plans branded “daft” as experts warn grandparents could become “overnight tax evaders”

Chancellor Rachel Reeves was shot by financial advisors after reports suggested that she might target tax -exempt family gifts in the latest inheritance reforms (IHT).

Wealth managers and planners described the “DAFT” and “stark tax seizure”, which risk punishing grandparents who support their children and their grandchildren financially.

Nowadays, individuals can abandon up to 3000 pounds annually of taxes exempt, with additional exemptions for wedding parties and small gifts that reach 250 pounds per person. Large transport operations can also fall outside IHT if the donor survived for seven years.

However, reports indicate that the Treasury is considering identifying or tightening these rules as part of the efforts made to fill the gaps in public financial resources before the autumn budget.

Scott Glasher, Director of Leicester -based Rollton TortonHe said: “I cannot believe that the advisor will be sufficiently enough to provide family gifts. All that will be achieved is to convert grandparents into tax attackers overnight, with cash gifts for children and missile grandchildren to avoid what many already see an incomplete tax.

“Nowadays, with an effective allowance of a million pounds for the couple who suffer from children, most people are unnecessarily worried about IHT. But with frozen allowances, more and more families will be dragged to the iHT network in the coming years. Best simple advice for me: spending them and enjoying yourself while you can, and sweep the appropriate financial advice to make sure what you want to move to your family, not on Chancellor.”

Benjamin Beck, the founder of Beck Mony’s coach, warned that the move could lead to poor financial pressure for young families.

He said: “Family gifts can be a law of life for many, from education to property ladder. This will affect many, and not only the few – which is surprising given the slogan of the Labor Party.” “The best way to deal with that is to plan early, know the rules and fully benefit from allowances, including the annual exemption of 3000 pounds and a seven -year base while it is continuing.”

“This is a blatant attempt to impose taxes on my mother and Abi, on which many people depend on the daily living costs or to help with deposits,” said David Sterling, the independent financial advisor in the Belfast Mint Wealth.

The rented financial plan Anita Wright from Ribbull wealth management He stressed the importance of careful planning if the rules change.

She pointed out that in light of the current framework, “regular gifts of income that do not affect the standard of the donor are directly outside IHT – a rule that is often not exploited.” She added that trust, life insurance and commercial relief can also play a role in long -term strategies.

She said: “Any movement to pick up gifts risk strikes families at the moment when support between generations is more vital.” “This only highlights the importance of starting the Caliphate Planning early and obtaining professional advice.”

The debate on the inheritance tax comes as the advisor is looking to increase revenues with the balance between the promise of work to support the working families. But with the high cost of living, IHT thresholds and freezing alternatives already, consultants warn that middle -class families deepen the tax network.

For many, the possibility of losing the ability to provide modest gifts free of taxes may seem less like closing a loophole and more similar to families trying to support the next generation.