Several reports have recently alleged that a new rumoured proposal will reduce the longstanding £3,000 annual tax-free gift allowance.
As rumours of the change swirl, financial coach Benjamin Beck commented: “Family gifts can be the difference between affording a deposit, keeping up with bills, or accessing good education.
The Chancellor @RachelReevesMP has commissioned the @OBR_UK to prepare an economic and fiscal forecast to be presented to @UKParliament alongside the Budget on 26 November 2025. pic.twitter.com/u3STOrS3NQ
— HM Treasury (@hmtreasury) September 3, 2025
“Tightening the allowance risks cutting off this support at the very moment it is needed most. This will affect the many, not just the few – which is surprising considering Labour’s slogan is ‘for the many, not the few'”, reports Birmingham Live.
David Stirling, a financial adviser at Mint Wealth, has also spoken out amid the rumoured changes on IHT (Inheritance Tax), describing the move as “a blatant attempt to tax the Bank of Mum and Dad”.
He added: “From everyday living expenses to help with property deposits, this support is essential. Reeves risks taxing the very transfers that hold families together.”
After being approached for comment by Newsquest, a HM Treasury spokesperson 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.
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“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 Autumn’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.”
They also stressed that the Chancellor makes tax policy decisions at fiscal events and they would not be drawn into speculation around future changes to tax policy.
