{"id":103678,"date":"2025-08-29T05:59:35","date_gmt":"2025-08-29T05:59:35","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/103678\/"},"modified":"2025-08-29T05:59:35","modified_gmt":"2025-08-29T05:59:35","slug":"inheritance-law-change-could-cost-bereaved-families-thousands","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/103678\/","title":{"rendered":"Inheritance law change could cost bereaved families thousands"},"content":{"rendered":"

The changes are set to be introduced in 2027<\/p>\n

10:07, 26 Aug 2025Updated 17:21, 26 Aug 2025<\/p>\n

\"RachelRachel Reeves<\/p>\n

Tax changes<\/a> could cost bereaved families tens of thousands of pounds. Chancellor Rachel Reeves<\/a> is expected to be about to introduce changes to inheritance tax laws – which could cost the average homeowner \u00a382,000.<\/p>\n

Under the new rules, a working-age single homeowner in possession of an average-priced property in England (\u00a3290,395) and a pension pot of \u00a3415,000 would be hit with an inheritance tax bill of \u00a382,158.<\/p>\n

This follows Ms Reeves’ announcement that from April 2027, pension pots will no longer be exempt from inheritance tax, subjecting them to taxes of up to 40%. The change is expected to increase the number of estates paying death duties from 4% to 9.7%.<\/p>\n

Ms Reeves is also considering plans to stop families from making unlimited tax-free gifts to their children under plans to tighten inheritance tax rules, reports Birmingham Live<\/a>.<\/p>\n

Jon Greer, head of retirement policy at Quilter, said: “A grieving family with young children and an average priced home could face six-figure IHT bills at the most distressing time.<\/p>\n

“Married couples are protected by exemptions and allowances; cohabitees aren’t.”<\/p>\n

He also noted that without a gradual introduction of the change, the policy risks inflicting a financial blow that could destabilise a family’s future despite raking in very little additional revenue.<\/p>\n

Rachael Griffin, tax and financial planning expert at Quilter, added: “Such a cap would bring more gifts into scope for inheritance tax and could capture not just large transfers designed to reduce tax bills but also modest, routine support between family members.”<\/p>\n

She added that Quilter’s research indicates retirees give about \u00a32,500 annually to loved ones, often to assist with education and living expenses.<\/p>\n

Meanwhile, she warned that without careful thresholds and exemptions it could unfairly penalise families who regularly make small gifts over many years.<\/p>\n","protected":false},"excerpt":{"rendered":"The changes are set to be introduced in 2027 10:07, 26 Aug 2025Updated 17:21, 26 Aug 2025 Rachel…\n","protected":false},"author":2,"featured_media":103679,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,12072,184,185,84],"class_list":{"0":"post-103678","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-labour-party","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-politics"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/103678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=103678"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/103678\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/103679"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=103678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=103678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=103678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}