HMRC warning issued as millions of households told 'last chance'

Households are being warned to prepare for a "tax grab" from the new Labour Government when their first Budget is announced in October. Increases to inheritance tax and capital gains tax could be confirmed by Chancellor Rachel Reeves.

Finance experts say it has led to "panic" that people's savings and assets could be targeted. They also say it is not just the ultra-rich who need to be worried, with "ordinary families" also set to be affected.

There are reports Labour will target inheritance and capital gains tax hikes as ways to make money after ruling out taxes on "working people" such as income tax and National Insurance. Experts at deVere Group said it had sparked a flurry of concerns about their savings and assets.

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Nigel Greeen, from deVere, said: "The upcoming Budget is widely expected to include significant hikes in inheritance tax, capital gains tax, and pension taxes – and the consequences could be devastating for many. We’ve seen an overwhelming surge in enquiries from clients, both existing and new, seeking urgent advice on how to protect their wealth before Chancellor Rachel Reeves delivers what is expected to be a painful financial blow next month.

“But the truth is that these plans will unfairly punish families who have worked hard to build their estates. With soaring property values pulling more and more ordinary families into the IHT (inheritance tax) net, this isn’t a tax just for the ultra-rich anymore. Those who have their wealth tied up in the family home, without access to the complex tax-saving strategies used by the ultra-rich, stand to lose the most.

“The frenzy of enquiries is only going to increase as the budget draws nearer. Don’t wait until it’s too late. By acting now, families can take advantage of the current rules, ensuring they keep control over their wealth and avoid the damaging effects of Labour’s likely tax reforms.”