Tax raid planned

Labour looks to hike IHT and CGT to help plug £40bn hole

The Guardian reports that ministers are considering introducing a lifetime cap on the amount an individual can give away as part of their inheritance tax planning.

Under the current rules, gifts made seven years before someone dies are not subject to IHT at all. A source told the paper that the Treasury is also reviewing rules around the taper rate, which sees gifts given three to seven years before death taxed on a sliding scale, from 32% to 8%. The Treasury is also reported to be looking at increasing capital gains tax rates with an allowance for investors who put money into British businesses.