Reeves says she will extend the inheritance tax freezing of the threshold for two additional years until 2030.

This means that the first £325,000 of any estate can be inherited tax-free, up to £500,000 if the estate includes a residence passed to direct descendants, and £1 million where a tax-free allowance is passed to a surviving spouse or civil partner, she said. said.

She says she will incorporate inherited pensions into inheritance tax from April 2027, she says, adding that she will reform agricultural property relief and commercial property relief.

From April 2026, the first £1 million of combined business and agricultural assets will continue to be subject to no inheritance tax, but for assets above £1 million, inheritance tax inheritance will apply with a reduction of 50%, at an effective rate of 20%, she said. .