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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Chancellor Rachel Reeves is looking to make sweeping changes to UK inheritance tax in her Budget, drawing on proposals from a five-year-old blueprint for reforming the levy.

Reeves, who is aiming to close a £40bn government funding gap, has been studying a 2019 report by the now-defunct Office of Tax Simplification, according to people briefed on the chancellor’s Budget preparations.

The chancellor has looked at extending the “seven-year rule” — a bedrock of UK inheritance tax planning governing gift giving — from seven years to 10 years, people briefed on her thinking told the Financial Times.

Currently, assets given away during an individual’s lifetime are exempt from IHT if the person lives for at least seven years after making the gift. Gifts made three to seven years before your death are taxed on a sliding scale known as taper relief.

Extending the rule to 10 years would make it harder for wealthy people to pass on assets without paying inheritance tax as they would need to live longer to do so.

The OTS, an independent body set up to advise the chancellor that was abolished last year, recommended reducing the rule to five years and scrapping taper relief.

IHT currently raises about £7.5bn each year. Rising house prices and frozen tax thresholds mean more middle class families have been dragged into paying IHT, yet the very wealthy often make use of a complex web of reliefs and exemptions to avoid or reduce it. 

The OTS report also questioned the IHT exemption for Aim shares, with its then director telling the FT: “We think Aim is the only market in the world where investors can receive an inheritance tax benefit.”

The IHT exemption on Aim shares has also been highlighted by the Institute for Fiscal Studies and Demos think-tanks as something the chancellor should scrap. However, the suggestions have sparked warnings that this could lead to the collapse of the market.

The chancellor has been a long-standing critic of what she regards as wealthy people using loopholes to avoid IHT and her team has been looking at ways to raise taxes on those with “the broadest shoulders”.

Writing in her 2018 book The Everyday Economy, Reeves criticised loopholes left by the Conservatives through which the “healthy, wealthy and well-advised” can avoid paying tax. 

The tax, she said, needs to be either reset or “shifted wholesale” to a tax on the receipt of any gifts throughout a lifetime. Under this idea, tax on all gifts would be made equal, thus making it harder to avoid tax. 

Labour officials have for weeks said that Reeves was looking to raise more from inheritance tax. The Treasury declined to comment on Budget “speculation”.

The 2019 OTS report made a number of recommendations on gifting that were not acted upon. At present, wealthy individuals can make unlimited “gifts from existing income” free of IHT if these are made on a regular basis and do not affect the giver’s standard of living. 

The report recommended introducing a fixed percentage of income that people were allowed to gift and remove the need for this to be regular, or scrap the exemption rule altogether and replace it with a higher annual personal gift allowance. This allowance could in turn be used to make gifts either from capital or income.

Among the potential reforms are a push to bring defined contribution scheme pension pots within IHT, instead of exempting them on death. Ending this loophole would raise about £400mn in 2029-30, according to research by the Institute for Fiscal Studies. 

Among the other loopholes that could be addressed are relief from IHT for business assets and agricultural land. Removing these wholesale would raise another £2bn by the end of the forecast period. 

The plethora of loopholes in the IHT system means that large estates tend to pay a lower marginal rate. Despite a headline rate of 40 per cent, the effective rate of inheritance tax peaks at 25 per cent for estates worth between £3mn and £7.5mn, before declining to 17 per cent on estates worth at least £10mn, according to the IFS. 

The OTS also recommended the removal of the capital gains uplift that currently applies when someone inherits assets.

The measure, which has been a part of the UK tax system since the 1970s, allows the person inheriting an asset to acquire it at the market value on the date of death, rather than the amount originally paid for it.

THOUSANDS of disabled Brits could lose up to £5,000 a year as Rachel Reeves is set to push through brutal welfare cuts.

The Chancellor is expected to slash £3bn from the welfare bill in the Budget – with £1.3bn of that coming from disability benefits.

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The changes, first introduced by the Tories, will tighten access to sickness benefits through tough new rules under the Work Capability Assessment.

The Office for Budget Responsibility said the move would save £3bn over four years and the sum is already factored into Treasury spending assumptions.

But the tougher criteria could see 420,000 disabled or ill people lose vital financial support, with experts warning some will face devastating cuts of up to £5,000 annually.

The Resolution Foundation, an independent think tank, has warned that slashing the benefits will leave these people struggling to make ends meet, calling on the Chancellor to rethink the plan.

But Work and Pensions Secretary Liz Kendall yesterday said the benefits system needs the most far-reaching reform in a generation to get millions back into work.

Her department is preparing to roll out a radical overhaul of welfare, promising a pro-work, pro-opportunity agenda.

There are 2.8 million people off work due to long-term sickess, with the cost of benefits for working age people set to reach £64bn by the end of the Parliament.

This figure will be an increase of £30bn on pre-pandemic levels.

Before the election, former Work and Pensions Mel Stride unveiled plans to tighten welfare rules to require an extra 400,000 people signed off long-term to go back to work.

They would automatically lose some of their benefits payments, with the hope being that they would eventually enter the workforce, cutting the welfare bill even further.

Ms Reeves has committed to delivering the £3bn in savings, but it will be up Ms Kendall to determine the specific changes needed to achieve that target.

A Government source said: “We have always said that the Work Capability Assessment is not working and needs to be reformed or replaced alongside a proper plan to support disabled people to work.

“We will deliver savings through our own reforms, including genuine support to help disabled people into work.”

Sohum Lohia is trying to remember the first time he looked at a chessboard. “I started playing when we were living in Singapore,” recalls the lanky 15-year-old. “My dad and my grandfather didn’t really play seriously, but they were having a game. I was fascinated by the different pieces. I think I was about six at the time.”

Twisting uncomfortably in the manner of any teenager speaking to a stranger, Sohum is sitting with his mother Aarti in their home in Holland Park. The family relocated to London from Singapore in 2016: Sohum’s father, Amit, is the vice-chair of the petrochemical industry Indorama Corporation, one of the largest producers of polyester in the world. A graciously appointed Victorian mansion, the house sits in a sweeping crescent in west London and is filled with phenomenal sculptures and art, some of the 200 pieces Aarti has amassed to become one of the most significant collectors of contemporary works in the UK. 

Today, however, she is not speaking of the future of Indian artists, or her philanthropic efforts, which are ambitious and wide-ranging, but of the role that now occupies most of her time. Aarti Lohia is a full-time “chess mum” and, as such, a mighty advocate for raising awareness, understanding and funding for what she considers a cruelly misrepresented sport.

She wasn’t always a chess crusader. Initially, Aarti and her husband were cautious of their son’s fascination with the game. “We discouraged him from playing, at least at the beginning,” says Aarti, who thought her son too young to understand it, as well as facing opposition from her family. “It was not cool to play chess when he started,” she says. “We are a traditional Indian family and they thought it was not a respectable sport.” They worried, she says, that he would turn out weird and introverted: “That he’d be that kid who, you know, played chess.”

Undeterred, Sohum undertook his own education and has since become a major talent. He won a double of British championships titles in 2019, the first time since 1996 that someone had scooped the under-11 and under-12 titles in the same year. In December 2021, he achieved an International Chess Federation ELO rating, a method for calculating a player’s skill level, of 2200, making him one of the top 10 juniors in the world. Currently, he is 97 points away from becoming a grandmaster, a title held by some 2,000 or so active players in the world. 

“I follow Sohum Lohia’s career quite closely,” says the FT’s chess columnist Leonard Barden, “and can confirm that he is one of England’s most promising teenage talents… Given his progress so far, he has a good chance of making grandmaster by the age of 18-19. Beyond that, he can target a place in the England Olympiad team of five, where the current members are aged between 33 and 52.”

Likewise, Aarti has become her son’s biggest cheerleader, sometime coach (“She’s not very good at chess,” says Sohum, slyly) and champion. She follows Sohum to all his tournaments, helps him practise and has been known to collar former prime ministers to secure more funding for the game.

“I’ll tell you a little bit about my conversation with Rishi Sunak,” she says of an opportunity she seized while having dinner with the politician. He’s like, ‘I love hiking.’ I said, ‘That’s fine, but it’s not a sport.’” Sunak’s subsequent pledge to invest £500,000 to improve the game’s visibility last year, was “truth be told”, says Aarti, “because of me”. 

Aarti may have to reframe her proposal, as the new chancellor Rachel Reeves is expected to slash the chess budget once again. Aarti is disappointed that the UK, with its great chess heritage, should not take the game more seriously. She is aghast at “the lack of respect for older chess players who have never made a good living, and the lack of recognition for the sport at the school level,” she adds. “Now there is a charity that is trying to put chess in schools: but it should be in schools as a sport. It’s not something you do just to sharpen your maths skills: you’re training the muscles of your brain.”

Nevertheless, in recent years, chess has undergone a revolution. Having boomed in the 1970s, with the famous rivalry between Bobby Fischer and Boris Spassky, the game is finding new popularity again. Says Barden: “First, the Covid-19 pandemic kickstarted a strong growth of fans, and then Netflix’s The Queen’s Gambit caused a bigger boom. Unexpectedly, we saw a third, even higher wave in late 2022 and early 2023, when millions of new fans started playing and following chess online. A big part of this revolution is that chess is not just something you do any more, but something you can watch. Content creators produce engaging content daily and encourage people to pick it up for the first, or the fifth, time.”

Sohum is coached by Luke McShane and Ramachandran Ramesh, an Indian grandmaster who started coaching full-time aged 32. The founder of the Chess Gurukul academy in Chennai, he has schooled players including Rameshbabu Praggnanandhaa of the winning Indian team at the Chess Olympiad in Budapest last month, at which they crushed the other teams. 

“The world of chess is undergoing a few drastic changes,” says Ramesh, “with some nations falling behind and others climbing to the top. What is making this more exciting is the fact that it is the young teenagers who are taking the lead role in this transition. Players like [18-year-old] Gukesh Dommaraju, Rameshbabu Praggnanandhaa [19] and Arjun Erigaisi [21], from India, Vincent Keymer [19] from Germany and Iranian-French Alireza Firouzja [21] are some of the youngsters who are instrumental in bringing new dynamics into play.” He is equally optimistic about the UK’s new generation: “Nine-year-old Bodhana Sivanandan and Sohum Lohia are a few of the youngsters who have the potential to make it to the England team in their late teens.”

Ramesh puts the new surge of talent and interest down to several factors: “Access to quality training, cutting-edge technology, the internet, information and an abundance of playing opportunities are a few of the reasons for it becoming accessible and shortening the learning curve.”

So ardent is Aarti’s belief in the benefits of chess playing that she’s currently making a documentary about a charity that brings it into prisons to show how impactful the game can be. 

“One thing that I’ve noticed universally, and without exception, is that chess players don’t think they’re doing anything great. It’s just a game.” Players, she argues, have a greater maturity, but most importantly the game teaches the value of consequence. “When you make a move, something’s going to happen,” says Aarti. “So you better think before you do. When prisoners learn chess, they internalise this understanding. Yes, they may have made careless moves, they’ve done silly things. And they see the chess game as a life imitated on the board.” 

Her theories are now backed up by behavioural studies that have shown chess to have a calming effect on those who play. “You know [prisoners] are not usually educated,” Aarti continues. “They’re very troubled and emotionally unstable – everything that chess players should not be. Chess takes all the traits of being impulsive and helps reset a person’s mind.” 

Sohum says the main skill he brings to chess is patience. “You’re always waiting a long time for the other player to make their move. You also learn to get a bit less emotional, so you don’t feel so bad if something goes wrong.” Slow and thoughtful in his manner, Sohum thinks hard before he talks. “You have to be willing to stay focused: that’s the main issue. When you’re seven or eight, you get bored easily so you just play very quickly [and make impulsive moves].” There’s also an inherent respect that comes with playing in a mixed-age category: “Age doesn’t matter. You play against everyone.”

He’s less enthused by the popular assumption that chess is a “STEM subject” and all its players are good at maths. Although his mother is quick to say that Sohum is actually very academic, he is more circumspect about his skills. “It’s a big stereotype that chess players are great at maths,” he shrugs. “Honestly, I think chess and maths are quite separate. I’m decent at maths, and so are other players, but they’re not very connected I don’t think.”

Despite counselling patience, intelligence and precision, chess is still a fierce competition. According to Barden, Sohum’s nearest rival is Shreyas Royal, who, at 15, is England’s youngest grandmaster. “Royal is at present on a higher trajectory than Sohum,” says Barden, “but that is not set in stone.” 

Sohum himself insists he’s playing for “enjoyment”, and his only ambition at this point is to become a grandmaster. But what of the chess parents? Are they also calm? Or are they like any other sporting mentors when they’re watching their children play big tournaments?

There are some games that Sohum advises his mother to stay away from. Invariably, he says: “The parents are more stressed than the players. They get kind of flustered, and very nervous, and they think everything’s unfair to their child.” Adds Aarti: “It’s a long game and there’s a lot of build-up. It can be quite a cauldron of emotions, but fans also do good things for the game.”

As long as Sohum is playing, Aarti will be beside him. Her passion for the subject remains undimmed. “I think everybody knows you can’t play at a certain level of sport if one parent is not crazy,” she says of their dynamic. “And this is universal everywhere, there are literally zero exceptions to that rule. One of the two parents has to really be in it. And in this family,” she concludes brightly, “that parent is me.”  

Advisers’ provider selection significantly changed when considering value and price in line with Consumer Duty Regulations, according to latest data from Protection Guru.

The data, published today (18 October), shows a divergence between traditional market shares and adviser product recommendations when value and price are considered.

It looks at recommended products by those UK-based advisers using the Protection Guru Pro (PGP) service in the first two quarters of 2024 (January-March/April-June).

PGP is the only service that allows advisers in the UK to look at quality and price to assess value across the full suite of protection products, covering life insurance, critical illness, income and business protection.

By combining these measurements, advisers can filter the vast number and variations of protection products, and only compare the products that meet their clients’ needs.

The data highlights that when quality and price are considered, providers such as Royal London and Guardian attract a considerable share of recommendations.

It also shows that adviser recommendations for Vitality products increased quarter-on-quarter.

The analysis found that across all products, advisers using PGP tend to recommend the fourth or fifth best product that fared 9th or 10th by price alone. This suggests an increasing shift to quality products in the market.

This demonstrates that when advisers follow the FCA’s Consumer Duty requirements and identify value by assessing quality and price, they are typically balancing both factors to get the optimal client outcome, according to Protection Guru.

Ian McKenna, founder of Protection Guru, said: “By taking price and quality into account across the full range of protection products, we give advisers the tools to do their job in the best possible way, and follow the FCA’s guidance under the Consumer Duty Regulations. The data demonstrates our service is driving real changes in adviser behaviour – leading to better consumer outcomes.”

Early evening, and I’m sitting on a scuffed carpet in a college bedroom with plaid curtains, listening to a tinny speaker and drinking from a warm bottle of Tesco’s white wine. One friend sits doodling in the corner, another makes dhal in an air fryer. We might be able to see the tip of the Radcliffe Camera out of the window, arguably the locus of Oxford’s almost 27,000-strong student body. But here, inside Staircase 25, Bowra, in Wadham College, we could just as easily be a strange commune.

Studying at Oxford is an experience of extremes. There’s the isolation of sitting within a fortress of books with three essays to write in five days; then the constant socialising, as everyone tries to fit six months’ worth of activities into an eight-week term. There’s the drudgery of the library grind that’s inexplicably tied to the joy of spending a tutorial trying to make sense of the sexual dynamics of The Trial with one of the world’s leading experts on Kafka. Meanwhile, the astounding, thrilling weight of history: it’s widely rumoured that Thomas Hardy wrote much of Jude the Obscure in my favourite local pub, the Lamb & Flag on St Giles’ street. 

Grace wears Chanel wool/cashmere pullover, £2,570. Vintage denim jeans and desert boots, both stylist’s own. Throughout: Annoushka gold hoop earrings, £1,590; all other jewellery, Grace’s own

You’d struggle to deny the city’s timeless beauty. Even battered by November winds, the limestone buildings and ancient trees seem to sparkle with a self‑assurance of their own. The meadows and rivers beckon you for a dip, undeterred by alleged E. coli outbreaks. And yet, as I come to the end of four years of studying history and German, my memories of Oxford are as dominated by recollections of late-night pesto pasta on the floor of a student dorm as they are of dreaming spires.

The prevailing image of Oxford – from the outside, at least – is still one of hypocrisy and snobbery. Many people will have seen Saltburn, only confirming images of careless students in formal dress, drinking champagne and occasionally propping open Marx’s Communist Manifesto before taking a lunch break at 11.15 in the morning. In Brideshead Revisited, it’s all dessert wine and teddy bears with Latin names.

My experience was much more defined by late-night library trips. As for the snobbery? I can thankfully say that that is (mostly) the stuff of the past. Tradition still looms large, but much of it is less abrasive: there’s a particular delight in watching 20 students jumping in the river having just finished their exams. Or the May Day morning celebrations, when you wait up to watch the sun rise and hear Magdalen College Choir at dawn. 

Vintage Celine c1970 wool blazer, £195. Vintage cotton ribbed vest, from a selection at Rellik. Vintage c1970 denim skirt, from a selection at Traid in Brixton. Vintage Gucci leather loafers, from a selection at Oxfam

Rather than gowns, I found the predominant fashion to be defined by the bin bags of secondhand clothes in Unicorn on Ship Street, where students must wrestle items off the owner, who doesn’t seem to want to part with anything at all. They reappear in outlandish outfits, which are cooler, often cheaper and more sustainable than the items in the nearby shopping centre – as we’ve shown in this story, styled almost entirely with preloved clothes. 

More importantly, Oxford is a place where people care: about the things they’re reading, about the people in their lives, about the world around them. Much still needs to be done to improve Oxford as an institution: despite student mental health issues being on the rise, it seems somewhat proud of the workload and pressure, which is such a strain. But, in terms of the students, for the most part I have met only kind, interested, creative people. One of Oxford’s greatest joys is to sit and discuss everything, from general elections to Jacqueline Wilson novels to the location of the closest sheela na gig, through the day and into the night. I expected to learn a lot from my professors. But it’s my friends – eccentric, motivated, engaged – from whom I learn every day. 

Grace wears vintage c1970 silk-chiffon dress, from a selection at Karen Vintage Boutique. Grace’s friends wear their own clothes

Vintage Gianni Versace c1990 silk crepe matching dress and top (over dress), from a selection at Found And Vision. Vintage leather belt, from a selection at Trinity Hospice. Vintage faux-leather cowboy boots, from a selection at Oxfam

Grace wears vintage 1960s cotton sweatshirt, from a selection at Silk & Rope Vintage. Vintage faux-fur skirt, from a selection at Found And Vision. Vintage Gucci leather loafers, from a selection at Oxfam. Pringle cotton socks, £9.99. Grace’s friends wear their own clothes

Vintage denim jacket and jeans, cotton polo top, and patchwork bag, all stylist’s own

Vintage c1970 faux-fur jacket, from a selection at Goldsmith Vintage. Vintage LL Bean denim skirt (just seen), from a selection at Cancer Care

Eres recycled polyamide Lydia Soyeuse bra, £250, and matching briefs, £150

Vintage c1930 silk satin slip dress, from a selection at Found And Vision 

Grace wears vintage c1970 faux-leopard-fur jacket, stylist’s own. Chanel wool/cashmere embellished pullover, £2,570. Vintage denim jeans (just seen), from a selection at The Salvation Army.

Sunspel cotton ribbed tank top, £70. Jacket and jeans, both as before. Grace’s friends wear their own clothes

Ralph Lauren plaid linen/silk jacket, £649, and matching trousers, £399. Vintage cotton shirt, from a selection at British Red Cross. Vintage Gucci leather loafers, from a selection at Oxfam. Velvet graduation ribbon (worn around neck), Grace’s own

Vintage c1980 cotton sports top, and vintage Gucci c1980 cotton tracksuit bottoms, both from a selection at Lime Green Bow Vintage

Vintage Marc Jacobs embroidered silk/cotton jacket, stylist’s own. Graduation cap, Grace’s own. Throughout: Felix wears his own clothes

Talent, Grace Clover at IMG. Friends and students, Allegra, Alexander Kahn, Amelia Hughes, Felix Foot, Hansa Batra and Yasmine. Hair, Neil Moodie Studio using Pureology. Make-up, Sarah Reygate at Carol Hayes using Ilia Beauty. Special thanks to Wadham College, Oxford, and its students, and the Lamb & Flag pub