Reeves Faces Inheritance Tax Overhaul Amid Budget Revamp

Rachel Reeves, British finance minister, plans to increase revenue from inheritance tax in her upcoming budget. The focus is on addressing the fiscal deficit without hiking major taxes on 'working people'. Adjustments to exemptions and reliefs are under consideration to boost funds for investment in services.

Rachel Reeves, the British finance minister, is set to increase revenue from inheritance tax in her October 30 budget, according to a report from the BBC. Specifics on how the measure will be altered remain undisclosed.

This fiscal statement marks Reeves' first since Labour's recent election win in July. Her focus is on resolving a significant shortfall in the government's operational budget. She aims to do this while maintaining a commitment to avoid increasing the primary taxes that affect 'working people'. Potential revisions to inheritance tax exemptions and reliefs are currently under review, although unnamed sources form the basis of the BBC's report.

Inheritance tax is imposed at 40% on estates valued over 325,000 pounds, a threshold unchanged since 2009. Despite affecting only 4% of deaths, it generates approximately 7.5 billion pounds annually. Exemptions exist for transferring family homes and offering business and agricultural reliefs. In the broader financial landscape, Reeves considers implementing both tax hikes and spending cuts amounting to 40 billion pounds, aimed at stabilizing the fiscal situation and investing in essential services.

(With inputs from agencies.)