Private Client Partners Comment On Potential Inheritance Tax Changes

Recent media reports have suggested the government is considering capping lifetime gifts as part of the Autumn Budget. The move is being discussed as a way to increase inheritance tax (IHT) revenue and address the UK's budget deficit.

Currently, individuals can give unlimited gifts that fall outside of IHT if they survive for seven years after making them. A cap would be a significant change to the current regime and would align the UK with other countries that already impose lifetime limits.

Speaking to multiple media outlets, Private Client Partner Hilesh Chavda commented on the potential for the changes to curb asset transfers.

"Capping lifetime gifts could alter behaviour, potentially reducing overall tax revenue as individuals might retain assets in their estates, transferring them only upon death. This shift could significantly impact the economy and tax receipts. The effect of any cap on lifetime gifts largely depends on its design. A substantial cap,