UK Chancellor Plans Changes to Inheritance Tax

In Australia, the potential for an inheritance tax is rising amid growing support for the Greens, particularly among young voters frustrated by wealth inequality and the housing market. Should the Labor Party form a minority government with the Greens, the introduction of a federal inheritance tax could become a reality for the first time since 1979, despite neither major party advocating for such a tax. Meanwhile, in the UK, Chancellor Rachel Reeves is set to unveil changes to inheritance tax in her upcoming budget, which may target tax reliefs and impact the wealthiest families. Currently, only around 4% of estates pay inheritance tax due to high thresholds, but with rising estate values, more families may face tax liabilities in the future. The government is also considering extending the seven-year gift exemption period, which could complicate financial planning for many. As changes loom in both countries, financial advisors stress the importance of careful planning to mitigate potential tax impacts.