What taxes might Rachel Reeves raise?

Inheritance tax, currently paid at a rate of 40%, is charged on the part of a deceased person’s estate above a threshold of £325,000.

But it only applies fewer than one in 20 estates.

No tax is paid if the estate is valued at less than £325,000, or if anything above this threshold is left to a husband or wife, civil partner, charity, or a community amateur sports club.

And if a home is part of the estate and a person’s children and grandchildren stand to inherit it, the threshold can go up to £500,000.

Ms Reeves could raise the rate of inheritance tax, or curb the relief available on certain inherited assets.

These include agricultural land and pension savings, which can both be inherited tax free.

There are also allowances for unquoted shares, which are shares in a business not listed on the stock exchange.

James Smith of the Resolution Foundation believes inheritance tax should be reformed because there are “all sorts of reliefs within the system that allow you to move your assets in a way that allows you to avoid paying inheritance tax”.

However, Mr Johnson says Ms Reeves will have to go further than simply curbing allowances, saying: “You won’t raise a lot by doing that – maybe a billion or two.”

Calls to cut or abolish inheritance tax come often as the tax is so unpopular, the Resolution Foundation says, external.