Last year (2022/23) saw a record £7.1 billion brought in by IHT but this financial year (2023/24) already looks set to beat that, with a record opening quarter raising £2.0 billion.
Property price gains and frozen thresholds are nudging more households into paying the tax with HMRC’s recent annual bulletin finding that in the financial year 2020/21 (the latest data available), 27,000 estates paid IHT which marked a 17% increase compared to the previous year.
The OBR’s latest forecasts suggest IHT will raise £7.2 billion this Financial Year and as much as £8.4 billion by 2027/28.
Stephen Lowe, group communications director at retirement specialist Just Group, commented: “Inheritance tax continues to rake in cash for the government as property prices tip more estates into the system’s frozen thresholds. This is evident in the spike in the number of estates paying inheritance tax in 2020/21.
“The result is that the government looks set to gain bumper returns from inheritance tax for the foreseeable future, as reflected in OBR estimates suggesting it will be generating over £8 billion a year by 2027/28.
“These big numbers are good news for the Exchequer but a warning for the public, reminding them to assess the entire value of their estate including an up-to-date valuation of their property.
“Professional, regulated advice can also help people work out the total value of their estate, calculate how much tax they may be likely to owe and understand what options they have to manage that tax bill.”
|
