Rachel Reeves is reportedly exploring measures to increase revenue from inheritance tax by tightening gift rules, a move that may disproportionately affect the middle class. The Guardian has reported the Treasury, ahead of the Autumn Budget, is considering tightening the rules surrounding the use of gifts of money to circumvent IHT.

Currently, cash gifts are exempt from tax as long as they are made more than seven years prior to the person’s death. Then, gifts made within three to seven years are taxed based on how close the recipient is to death. This move comes as Reeves is seeking to gather £50bn in new taxes before her next Budget to avoid breaking the government’s fiscal rules.

Gifting is a legitimate form of inheritance tax planning, not just for the super-rich, but also for mid

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