Rachel Reeves has been warned that a fresh tax raid could break the property market. (Image: Getty)
Rachel Reeves' potential new tax raid could crush the dreams of first-time buyers and send house prices plummeting, experts have warned. The Chancellor is reportedly considering a lifetime cap on the value of gifts that someone can pass on before they die without paying tax. If implemented, large sums handed over would count as part of an estate for inheritance tax purposes, even if they are given decades before the person dies.
This, it is feared, could deter parents from giving their children money to help them get on the property ladder. Nicholas Mendes, of mortgage broker John Charcol, told The Telegraph this would send house prices plummeting and result in fewer people buying homes. And Simon Shaw, Savills’ finance chief, warned that a "vacuum" of information about tax changes could prompt people to wait before buying a house, in a blow to the property market. He said: “In the interim period, it creates a level of uncertainty in the residential market particularly. It’s classic uncertainty. People fill the vacuum with their own fears about what might happen”. Currently, 52% of first-time buyers rely on the bank of mum and dad, estate agency Savills reported.
Article continues belowADVERTISEMENT
DON'T MISS
Powered by
Grieving households would face ￡100,000 HMRC bill over ‘gifts to family' rule
Rachel Reeves could tax landlords' rental income with new National Insurance levy
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
Labour friendly fire as Rachel Reeves could derail major Angela Rayner plan
Rachel Reeves could launch fresh tax raid on working people amid budget black hole
Experts slam Rachel Reeves' ‘partisan theatre' as landlords could see ‘punitive' NI tax
Rachel Reeves's Budget guru wants 20 brutal tax hikes - see which ones will hit YOU
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Rachel Reeves alerted inheritance tax raid could choke off lifeline for young families
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Households could face new ￡183 a month bill after October budget
Tax expert tears apart Rachel Reeves' family homes raid
Tories challenge Rachel Reeves to rule out ￡15,000 'family homes tax' on struggling Brits
Rachel Reeves ‘pushing ahead with tax raid' despite huge ￡10bn milestone looming
Brits call to stop Reeves's 'unfair double tax' of pension funds as thousands sign
DWP confirms exact date you must be born to get 2025 winter fuel payment
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Grieving households would face ￡100,000 HMRC bill over ‘gifts to family' rule
Rachel Reeves could tax landlords' rental income with new National Insurance levy
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
Labour friendly fire as Rachel Reeves could derail major Angela Rayner plan
Rachel Reeves could launch fresh tax raid on working people amid budget black hole
Experts slam Rachel Reeves' ‘partisan theatre' as landlords could see ‘punitive' NI tax
Rachel Reeves's Budget guru wants 20 brutal tax hikes - see which ones will hit YOU
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Rachel Reeves alerted inheritance tax raid could choke off lifeline for young families
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Households could face new ￡183 a month bill after October budget
Tax expert tears apart Rachel Reeves' family homes raid
Tories challenge Rachel Reeves to rule out ￡15,000 'family homes tax' on struggling Brits
Rachel Reeves ‘pushing ahead with tax raid' despite huge ￡10bn milestone looming
Brits call to stop Reeves's 'unfair double tax' of pension funds as thousands sign
DWP confirms exact date you must be born to get 2025 winter fuel payment
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Grieving households would face ￡100,000 HMRC bill over ‘gifts to family' rule
Rachel Reeves could tax landlords' rental income with new National Insurance levy
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
Labour friendly fire as Rachel Reeves could derail major Angela Rayner plan
Rachel Reeves could launch fresh tax raid on working people amid budget black hole
Experts slam Rachel Reeves' ‘partisan theatre' as landlords could see ‘punitive' NI tax
Rachel Reeves's Budget guru wants 20 brutal tax hikes - see which ones will hit YOU
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Rachel Reeves alerted inheritance tax raid could choke off lifeline for young families
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Households could face new ￡183 a month bill after October budget
Tax expert tears apart Rachel Reeves' family homes raid
Tories challenge Rachel Reeves to rule out ￡15,000 'family homes tax' on struggling Brits
Rachel Reeves ‘pushing ahead with tax raid' despite huge ￡10bn milestone looming
Brits call to stop Reeves's 'unfair double tax' of pension funds as thousands sign
DWP confirms exact date you must be born to get 2025 winter fuel payment
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
READ MORE: 'Rachel Reeves plots new tax no chancellor should even consider – it's madness'
READ MORE: Rachel Reeves' blunder forces businesses to ‘hit brakes’ - told to do 3 things
Experts said the move could hinder first-time buyers. (Image: Getty)
Parents are allowed to pass on as much money as they want without paying inheritance tax, as long as it's transferred at least seven years before they die.
Assets over ￡325,000 gifted between three and seven years before death are taxed between 8% and 32%, and 40% in the last three years.
Powered By
10 Sec
Fox News' Bret Baier reports on Minneapolis shooting
Next
Stay
In 2024, nearly 173,500 first-time buyers received an average of ￡55,572 from their parents. That year alone, gifts and loans from parents came in at a whopping ￡9.6 billion.
Sponsored
Learn More
Singapore: Top Forex Broker Revealed [Read]
Undo
Roarie Scarisbrick, of buying agent Property Vision, warned that changing the current gifting rules would only pose more issues for an already "clogged up" property ladder.
He told the outlet: "You’ve got people moving up and down the ladder all the time, and each rung depends on the others. The problem over the last few years is that taxes, like stamp duty, have really clogged up the chain."
Homebuyers in London and the South East would be hit hardest by the change, Aneisha Beveridge of Hamptons said.
Deposits set first-time buyers in London back ￡137,863, compared to ￡68,631 in the South East and ￡26,858 in the North East, Savills added.
DON'T MISS
Powered by
Experts slam Rachel Reeves' ‘partisan theatre' as landlords could see ‘punitive' NI tax
Rachel Reeves's Budget guru wants 20 brutal tax hikes - see which ones will hit YOU
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Rachel Reeves alerted inheritance tax raid could choke off lifeline for young families
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Households could face new ￡183 a month bill after October budget
Tax expert tears apart Rachel Reeves' family homes raid
Tories challenge Rachel Reeves to rule out ￡15,000 'family homes tax' on struggling Brits
Rachel Reeves ‘pushing ahead with tax raid' despite huge ￡10bn milestone looming
Brits call to stop Reeves's 'unfair double tax' of pension funds as thousands sign
DWP confirms exact date you must be born to get 2025 winter fuel payment
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Elephant Digs A Huge Hole For 11 Hours And Sees What Comes Out Of ItReportingly |
Grieving households would face ￡100,000 HMRC bill over ‘gifts to family' rule
Rachel Reeves could tax landlords' rental income with new National Insurance levy
Cote De Pablo Shows Off Her Perfect Figure In These PhotosThe Noodle Box |
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
We Can't Believe She Wore That To The Red CarpetThe Noodle Box |
Labour friendly fire as Rachel Reeves could derail major Angela Rayner plan
Rachel Reeves could launch fresh tax raid on working people amid budget black hole
Learn More
Experts slam Rachel Reeves' ‘partisan theatre' as landlords could see ‘punitive' NI tax
Rachel Reeves's Budget guru wants 20 brutal tax hikes - see which ones will hit YOU
Play this game for 1 minute and see why everyone is crazy about itplanetcapture.io |
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
The World's Oldest Living Actors.Reportingly |
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Rachel Reeves alerted inheritance tax raid could choke off lifeline for young families
They Were So Beautiful Before; Now Look At Them; Number 10 Will Shock YouReportingly |
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
Households could face new ￡183 a month bill after October budget
Learn More
Tax expert tears apart Rachel Reeves' family homes raid
Tories challenge Rachel Reeves to rule out ￡15,000 'family homes tax' on struggling Brits
Play this game for 1 minute and see why everyone is addicted.Panzer.Quest |
Rachel Reeves ‘pushing ahead with tax raid' despite huge ￡10bn milestone looming
Brits call to stop Reeves's 'unfair double tax' of pension funds as thousands sign
DWP confirms exact date you must be born to get 2025 winter fuel payment
UK homeowners face new ‘mansion tax' raid as Rachel Reeves 'plans big change'
Grieving households would face ￡100,000 HMRC bill over ‘gifts to family' rule
Rachel Reeves could tax landlords' rental income with new National Insurance levy
Rachel Reeves 'daft new IHT plot' slammed for 'turning grandparents into tax evaders'
Rachel Reeves asks tax fanatic to write her Budget - he wants to axe 'silly' triple lock
Labour friendly fire as Rachel Reeves could derail major Angela Rayner plan
Rachel Reeves could launch fresh tax raid on working people amid budget black hole
Experts slam Rachel Reeves' ‘partisan theatre' as landlords could see ‘punitive' NI tax
Rachel Reeves's Budget guru wants 20 brutal tax hikes - see which ones will hit YOU
The 7 crazy policies backed by the Labour minister writing Rachel Reeves's Budget
Rachel Reeves plotting major 'pensions tax raid' in huge blow to older Brits
Rachel Reeves eyes huge ￡2bn pension tax raid - check if you will be hit
Rachel Reeves alerted inheritance tax raid could choke off lifeline for young families
Don't save, don't build a pension, don't buy a home - it's all Rachel Reeves's money now
A Treasury spokesman said: "As set out in the Plan for Change, the best way to strengthen public finances is by growing the economy, which is our focus.
"Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms, which are expected to grow the economy by ￡6.8bn and cut borrowing by ￡3.4bn.
"We are committed to keeping taxes for working people as low as possible, which is why at last October’s Budget, we protected working people’s payslips and kept our promise not to raise the basic, higher or additional rates of income tax, employee National Insurance, or VAT."
Read Next
SUBSCRIBEInvalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy