What is the 7 year inheritance tax rule and how does it help cut your bill?

Rachel Reeves, the Chancellor, is considering potential changes to pension regulations in the upcoming budget. One proposed alteration involves tax-free cash drawdowns, which some reports suggest may be off the table. Instead, there are indications that Reeves is focusing on salary sacrifice schemes, which allow employees to exchange part of their salary for benefits. The ongoing speculation about these pension changes reflects broader discussions on tax policies and fiscal strategies.

Rachel Reeves is encountering resistance from several major investment platforms regarding her proposal to reform individual savings accounts (ISAs). This opposition presents a challenge for the UK Chancellor, especially as the budget announcement is less than two weeks away.

The bond markets selling UK debt reacted negatively to Rachel Reeves's recent change of heart regarding income tax rises. This shift in stance has raised concerns among investors, who had previously been courted by the chancellor over the stability of UK debt. The implications of this decision could affect the government's financial strategies moving forward.

UK bond markets experienced a significant sell-off on Friday following the announcement that Rachel Reeves had abandoned plans to increase income tax rates in the upcoming autumn budget. This decision led to the highest rise in the cost of UK government borrowing in a single day since early July, when Reeves' emotional appearance in parliament had previously unsettled investors. The market's reaction indicates a negative sentiment towards the government's fiscal strategy.

Rachel Reeves has abandoned her plan to raise income tax rates for the first time since 1975 in the upcoming budget. Instead, she is expected to implement a tax rise of £7.5 billion as part of her efforts to address public finances. The chancellor is anticipated to raise between £20 billion and £30 billion overall to repair the financial situation. This U-turn on income tax rates has led to discussions about alternative revenue-raising options, including freezing income tax thresholds and reforming capital gains tax.

Property experts, including TV presenter Kirstie Allsopp, are urging Chancellor Rachel Reeves to abolish the 'sin tax' of stamp duty in the upcoming budget. They recommend replacing it with an annual property tax, as many individuals are anxious about potential changes to the current stamp duty system. The call for reform comes ahead of the budget announcement scheduled for November 26, 2025, highlighting the need for a more stable and predictable taxation framework in the property market.

Labour's internal conflicts are jeopardizing Chancellor Rachel Reeves' upcoming budget plan, scheduled for November 26, which aims to reassure government bond markets. The turbulence within the party, exacerbated by aggressive briefings from No 10, threatens to undermine investor confidence just weeks before the budget announcement. While there were hopes that proposed tax increases could reduce borrowing costs, the ongoing infighting may hinder these efforts, raising concerns about the stability of the financial markets and the government's fiscal strategy.