It follows the annual update on IHT which revealed that the number of estates paying inheritance tax in 2021/22 (the latest FY available) had risen 3%.
The Chancellor has ruled out increasing taxes on working people, which means limiting available IHT relief could be one option for Rachel Reeves to raise more revenue for a government in need of extra income.
Stephen Lowe, group communications director at retirement specialist Just Group, commented: “Another month and another boost for The Treasury from Inheritance Tax. But with the Autumn Statement in two months’ time, it seems inevitable that the Chancellor will at the very least run her slide rule over Inheritance Tax to see if it’s a way to raise more revenue.
“The combination of frozen thresholds and property price rises are already driving a record Inheritance Tax take, with receipts doubling compared to 2009 when the tax-free threshold was frozen. We will have to wait and see if Rachel Reeves decides that Inheritance Tax can work even harder for the Treasury.
“For people who think they may be affected by IHT we recommend they regularly review the entire value of their estate, including obtaining an up-to-date valuation of their property. Speaking with a professional, regulated adviser will then help in understanding how to legitimately manage exposure to the tax.”?
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
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