HMRC is "considering" a rule change for UK households who gift family members money. Labour Party Chancellor Rachel Reeves is reportedly considering an exemption that permits individuals to pass on unlimited wealth without paying tax.

Ms Reeves could put a stop to people gifting relatives cash - and avoiding inheritance tax. Regular gifts of surplus income can be immediately exempt from IHT as it stands.

But James Harrison, chartered financial planner at Path Financial said: “Often individuals don’t accurately track gifts made during their lifetime, leaving their executors with a paperwork headache on their death.

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“Gifts do not count for inheritance tax purposes if they are made to a spouse, civil partne

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