Uncertainty over IHT changes affecting property market 18 Aug 2025Uncertainty over changes to Inheritance Tax (IHT) is adversely affecting the UK property market, experts have warned. Reports suggest that the Treasury may hike IHT to address a funding shortfall of between £20 billion and £70 billion. Chancellor Rachel Reeves is said to be considering measures to tighten IHT gift rules. Cash gifts are currently exempt from IHT as long as they are made seven years prior to an individual's death. HMRC data for 2020/21 showed that families gave over £2.1 billion in cash gifts to reduce their IHT bill. Commenting on the matter, Shadow Chancellor Mel Stride said: 'Those who have worked hard, saved and want to pass something on to their loved ones shouldn't be punished by yet more taxes. 'Tax rises are coming to paper over the cracks of the Chancellor's economic mismanagement.'