31/05/2026
Inheritance tax: Time for reform!
The UK's inheritance tax system is increasingly out of touch with modern life. House prices, savings, and living costs have changed dramatically over the decades, yet some of the key rules have barely changed.
Take the annual gift allowance: people can give away only £3,000 per year tax-free, a limit that has remained unchanged since 1981. If that allowance had risen with inflation, it would be worth approximately £11,000–£12,000 today, allowing families far greater flexibility to support children and grandchildren with housing, education, and other major life expenses.
The system also relies heavily on the 7-year rule, meaning gifts can still be subject to inheritance tax if the person making the gift dies within seven years. While designed to prevent tax avoidance, many families see it as an outdated and overly complex rule that creates uncertainty and discourages people from helping loved ones during their lifetime.
Meanwhile, inheritance tax is charged at 40% on the value of an estate above the available tax-free allowances. With rising property values, more families are being drawn into a tax that was originally intended to affect only the wealthiest estates.
If you agree that inheritance tax laws should be reviewed and modernised, please sign and share this petition. Together, we can push for a fairer, simpler system that reflects today's economy and helps families pass on the fruits of a lifetime's work.
Petition: Increase the UK inheritance tax gift allowance in line with the US
We call on the UK Government to reform the current inheritance tax gift rules (where only £3,000 is exempt each tax year before the seven-year rule applies)
We call on the UK Government to reform the current inheritance tax gift rules (where only £3,000 is exempt each tax year before the seven-year rule applies)
