Going after family gifts in an inheritance tax grab risks cutting struggling young families off from vital support, the chancellor has been told.
The typical pensioner gives 10 per cent of their income — an average of almost £2,500 — away to family each year, about £1,320 directly and £1,175 towards education.
The research from the wealth manager Quilter and the Centre for Economics and Business Research, a consultancy, shows the impact that a cap on tax-free gifts could have on younger generations. It comes amid reports that the measure is among those being considered by Rachel Reeves as she tries to plug a gap in the nation’s finances.
Rachael Griffin from Quilter said: “There’s a strong economic case for supporting the transfer of wealth between generations. Younger people face significant financial pressures, from high housing costs to childcare and limited pension savings, while older generations often hold substantial assets. Sensible rules help to unlock this capital at the right time.”
What could be on the table
