Inheritance tax receipts for the period from April to November 2023 were £0.4 billion higher than the same period last year, new figures from HM Revenue & Customs have revealed.
In its latest bulletin, HMRC said receipts for the period totalled £5.2 billion, with higher receipts in June and October 2023 due to a small number of higher-value payments than usual.
Inheritance tax is on course to deliver £9 billion for the Treasury by 2027/28, with the latest figures pointing to another record breaking year.
Julia Peake, tax and estate planning specialist at Canada Life, said: “While speculation around changes to inheritance tax was rife in advance of the Autumn Statement, it yielded very little, with no changes in relation to the nil rate bands nor tax rate. With the latest tax data showing that IHT has delivered weekly receipts of £158 million, perhaps a status quo should come as no surprise given how much this tax has grown over the past few years.”
Peake said it was important to remember IHT is not just a tax on the wealthiest in society as more estates continue to be caught in the expanding tax net.
“People think that they won’t be caught but with both the Standard and Resident nil rate bands remaining frozen until at least April 2028, and compounded by house price inflation, more people are finding that when their house becomes unencumbered by a mortgage it takes up most if not all of their nil rate bands.
“This results in other assets in their estate being hit by IHT. This will remain the case unless rumours of change materialise next year in the Spring Budget, with the unfreezing of thresholds.”
Peake said early planning is key to reducing the liability to this tax and clients should take advantage of exemptions and gifts to trusts.
