Inheritance Tax Receipts Increase
HMRC’s Inheritance Tax Receipts (IHT) were £4.1 billion from April to October 2022, an increase of £500 million over the same period last year, HMRC statistics show.
The reported increase in inheritance tax receipts comes swiftly behind Chancellor Jeremy Hunt’s announcement in the Autumn Statement that the IHT tax threshold will be frozen until 2028.
The Office for Budget Responsibility projections for inheritance tax receipts show an increase from £6.1bn over 2021/22 to £7.8bn by the 2027/28 tax year. This is a projected rise of 28%.
HMRC also states that “record high receipts in June can be attributed to a small number of higher-value payments than usual.”
The current nil-rate band of inheritance tax has remained at £325,000 since 2009 after being frozen numerous times. Historically a tax that affected purely the wealthiest of society, it’s now an important consideration for many more.
Careful planning is essential to prevent HMRC being the major beneficiary of your estate. If you don’t yet have any IHT plans in place, please get in touch with us. We’re not experts in the field, but can advise on the basics and connect you with experts if your affairs are likely to be more complex.
You can see the HMRC report around IHT receipts for April to October, together with other HMRC Tax Receipts here.
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