Rachel Reeves and the HMRC: Tackling the Inheritance Tax Gap

Saturday, 27 July 2024, 16:07

Chancellor Rachel Reeves is currently evaluating new measures that could empower HM Revenue and Customs (HMRC) to enhance its efforts in closing the substantial 'tax gap' affecting inheritance tax collections. This initiative could potentially lead to significant recoveries of billions lost annually, thereby improving government revenue and fairness in the tax system. With increased scrutiny on financial practices among savers, this proposal is timely in addressing the long-standing issues surrounding tax compliance.
Telegraph
Rachel Reeves and the HMRC: Tackling the Inheritance Tax Gap

Introduction

Chancellor Rachel Reeves is taking steps that may grant HM Revenue and Customs (HMRC) additional powers in an effort to recover funds lost to the annual 'tax gap' related to inheritance tax.

Background

The tax gap is a persistent issue that results in billions being uncollected each year, which places a strain on the government's ability to fund public services.

Proposal Overview

  1. Evaluate new measures to enhance HMRC's authority.
  2. Target specific compliance issues among taxpayers.
  3. Recover lost tax revenue effectively.

Conclusion

This potential shift in power could result in a more thorough examination of tax practices, bringing about a more equitable system for all citizens. If enacted, it would symbolize a significant move by the Labour Party aimed at ensuring that everyone pays their fair share.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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