New Labour budget shakes up pension inheritance and business taxes

Rachel Reeves first budget as Chancellor brings far-reaching changes to UKs tax system. The long-awaited announcement (first Labour budget since early-2010s) introduces wide-ranging reforms thatʼll affect both individuals and businesses

The most significant change targets pension inheritance: starting in 27‚ retirement savings will count towards estate value and face inheritance tax — a dramatic shift from current rules that shield pensions from the 40% charge. The inheritance tax threshold (which includes up-to £500k for family homes) stays frozen til 2030; this means more estates will face death duties

Business owners face their own set of challenges: employers NI contributions are going up capital gains tax rates will increase for non-property assets and buy-to-let landlords must pay extra 2% on the stamp duty surcharge. The tax-payment interest rate is also jumping from 7‚5% to 9‚5% which hits families dealing with probate delays

Shadow Chancellor Jeremy Hunt compared this package to the 70s-era budget; when Labour last made such big changes. The Treasury office now shows different priorities too — Ellen Wilkinsonʼs portrait (co-founder of brit communist party) replaced Nigel Lawsonʼs image

The £40bn tax package targets what Labour calls “non-working“ income sources: this means businesses that create jobs might need to cut costs somewhere. Private sector employers could reduce hiring freeze wages or limit investment — which affects regular workers despite Labours promise not to raise taxes on “working people“