Tightening inheritance tax would damage growth

Keir Starmer is reportedly considering tightening inheritance tax rules.

Plans to tighten inheritance tax rules on gifting and passing assets on to family members before death would damage UK growth and could lead to “regret” within the government, Labour has been warned.

Treasury officials are reportedly considering changing rules which allow Brits to pass on assets to younger family members over seven years before they die tax-free.

The “taper relief” tax rates on gifts made seven years before someone dies, which increase to 32 per cent if gifts are given three years before the day the person dies, could also be partly replaced with a lifetime cap on the amount of cash or assets individuals can donate, according to a source quoted by The Guardian .

But leading analysts at Hargrea