Could Labour impose a “double death tax” of more than 50%?

Speculation is mounting that capital gains tax will be reformed in the Budget - and one option is to charge bereaved families the tax on top of inheritance tax. We explain how it could work

Rachel Reeves Delivers First Major Speech As New Chancellor Of The Exchequer
Chancellor Rachel Reeves could announce changes to capital gains tax in her first Budget on 30 October
(Image credit: Getty Images)

Bereaved families could face a total tax rate of 54% if capital gains tax is applied on top of inheritance tax.

The Office of Tax Simplification (OTS) has previously suggested that passing on assets on death should trigger a capital gains tax liability. Currently, beneficiaries can inherit assets without paying CGT.

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Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.