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UK Inheritance Tax Revenues Surge Amid Proposed Reforms

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Recent figures from the Office for National Statistics (ONS) reveal that inheritance tax (IHT) generated £736 million in September alone, bringing the total for the financial year to nearly £4.3 billion. This marks an increase of over 10% compared to the same period last year, highlighting the growing impact of rising asset values on tax revenues.

Currently, inheritance tax is levied at a rate of 40% on assets exceeding £325,000 upon an individual’s death. The tax, often referred to as the “death tax,” has come under scrutiny, with Labour’s shadow chancellor Rachel Reeves considering a range of changes aimed at reforming the system. Among the proposals is a potential extension of the “seven-year rule,” which allows gifts to be passed on tax-free after seven years, to a period of ten years.

Additionally, there is speculation that Reeves may seek to eliminate reliefs on shares listed on the Alternative Investment Market (AIM), along with exemptions for businesses and agricultural land. While these exemptions were initially designed to facilitate the transfer of farms to the next generation, critics argue they have been exploited by wealthier individuals to minimize their estate’s tax liability.

Reeves’ proposed reforms are part of a broader effort to generate additional revenue for the Treasury, which is grappling with a significant fiscal shortfall. Sarah Coles, head of personal finance at Hargreaves Lansdown, emphasized that even without changes, taxpayers could still face rising bills due to frozen income and inheritance tax thresholds, coupled with reduced allowances for capital gains and dividends. “The need for more cash to fill the black hole in the Government’s finances could push up any of these taxes,” Coles noted.

The surge in inheritance tax receipts is largely attributed to increasing asset values over the past year. The FTSE 100 index has risen by 12.5%, and UK house prices saw an average increase of 2.8% in the year leading up to August. These trends, combined with unchanged tax thresholds, have pushed more estates into the IHT bracket.

Beyond inheritance tax, other asset-based taxes are also contributing to government revenues. In September, the stamp duty land tax, imposed on property purchases, generated £1.2 billion, an increase from £1.1 billion the previous year. Similarly, stamp duty on shares brought in £263 million—£40 million more than in 2023—while capital gains tax revenue rose 16% year-on-year to £192 million.

As the government navigates a challenging fiscal landscape, Reeves is expected to outline a series of tax reforms in the upcoming Budget aimed at bolstering revenue streams. These could encompass modifications to inheritance tax, capital gains tax, and potentially new initiatives to address the escalating costs of public services. However, any proposed reforms may face pushback from sectors and individuals likely to bear the brunt of increased tax burdens.

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Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

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In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

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Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

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The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

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UK Government Reports Lower-Than-Expected Budget Surplus in January

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The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

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