• December 5, 2023
 IHT receipts £700 million higher than this time last year

IHT receipts £700 million higher than this time last year

New data released by HM Revenue & Customs (HMRC) has revealed inheritance tax (IHT) receipts are some £700 million higher than this time last year.

Total receipts from April 2022 to December 2022 now sit at £5.3 billion compared to £4.6 billion in December 2021.

IHT receipts financial year 2022-23. Source: HMRC

Largely driven by soaring property prices in recent times, the value of people’s estates has risen, making rises in HMRC’s IHT take inevitable – especially in the context of the nil-rate band and residential nil-rate band both being frozen.

This also comes amidst reports of HMRC “targeting bereaved families” with “raids” on the estates of wealthy deceased individuals to double-check whether they’re paying the right amount of IHT, with as much as £326 million reportedly coming between March 2021 and March 2022 as a result of such raids.

Commenting on the latest figures was Andrew Tully, technical director at Canada Life, who said it looks as though a “record-breaking year” is on the way:

“The latest IHT receipts suggest we are on a trajectory for a record-breaking year, with the frozen thresholds catching more estates in a wider tax take. Inheritance tax is no longer an issue for the wealthy only, but with effective [..] planning much can be done to minimise the impact of IHT on estates, including the use of trusts and gifting.”

Jamie Lennox, Editor, Today's Wills and Probate

Editor of Today's Conveyancer, Today's Wills and Probate, and Today's Family Lawyer Contact LinkedIn jamie.lennox@todaysmedia.co.uk Twitter