This is Money Podcast Should we axe inheritance tax on family homes?
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Oct 9, 2026 Kemi Badenoch’s inheritance tax proposal puts family homes at the centre of a lively money debate, alongside practical ways to reduce future bills. The discussion also explores Lifetime ISA penalties and a replacement for first-time buyers, Tesco’s prediction of a less boozy Christmas, how to secure a free will, and Jaguar’s £120,000 electric gamble.
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Spend Your Money Before The Taxman Does
- If inheritance tax is certain, consider spending money during your lifetime or giving it away rather than preserving everything for heirs.
- Simon Lambert frames spending as effectively 40% off, suggesting family holidays, meals, or other meaningful experiences.
Record Every Gift Before It Becomes A Problem
- Keep detailed records of gifts, including dates, amounts, recipients, and intentions, because executors may need to establish inheritance tax liabilities.
- Annual exemptions include £3,000 overall and unlimited £250 gifts per individual, while larger gifts generally require seven years.
Use Surplus Income To Pass Wealth On
- Gifts from surplus income can avoid the seven-year rule when they come from regular excess income without reducing normal living standards.
- Keep evidence of income, spending, and habitual payments; Simon Lambert mentions completing form IHT-403 beforehand.