Budget 2025 Inheritance Tax Relief

Budget 2025 Inheritance Tax Relief. Changes to inheritance tax (iht) reliefs and exemptions are among the most controversial changes in rachel reeves’ first budget. The rate of relief for qualifying property in excess of £1 million has reduced to 50%.

Budget 2025 introduces significant shifts in inheritance tax rules, impacting estate planning and succession strategies. Inheritance tax, which is technically known as the capital acquisitions tax (cat), is a tax of 33% on gifts and inheritances which kicks in at a particular limit.