Inheritance tax receipts for April 2024 to September 2024 are £4.3 billion, which is £0.4 billion higher than the same period last year.
In the last set of tax revenue statistics before the Budget, HM Revenue and Customs revealed that gross tax and NIC receipts for April 2024 to September 2024 are £406.3 billion, which is £11.1 billion higher than the same period last year.
Income tax, capital gains tax and NICs receipts for April 2024 to September 2024 are £226.8 billion, which is £6.2 billion higher than the same period last year. CGT receipts for the three months July to September this year were 16.3 per cent higher than the same period of 2024. Laura Hayward, Tax Partner at professional services and wealth management firm Evelyn Partners, comments and runs the rule over some of the most likely tax measures in the forthcoming autumn Budget:
“It is unlikely that this last update on monthly revenues will have any impact on the Chancellor’s plans for the Budget, which will be determined by fiscal projections and rules over the next five years. But rising tax receipts can tell their own story about what Rachel Reeves is considering for the Budget in order to raise an estimated £35billion, particularly in the case of inheritance tax, capital gains tax and income tax.
The steady annual rise in IHT receipts has been ingrained in recent years as inflation has dragged more assets and more estates over the frozen nil-rate bands. Any changes aimed at increasing the IHT take beyond this fiscal drag effect are likely to reap outsize results over the coming years as the baby boomer generation reaches average mortality.
So it’s no surprise IHT is at the centre of Budget speculation again, with firm reports claiming business and agricultural property reliefs will be reformed and the gifting rules revamped. We have spoken to many people this summer who were bringing forward plans to gift substantial assets, not just to start the seven-year clock ticking, but also to pre-empt an expected CGT rise.
It’s not out of the question that the Chancellor could also look at the nil-rate bands, as the residential NRB has come under criticism for discriminating against those who can’t or don’t want to leave their main property to a direct descendant. Could the RNRB be ditched with a less-than-equivalent increase to the main NRB?”
William Stevens, Head of Financial Planning and Partner at Killik & Co. said:
“As we swiftly approach the new Labour government’s inaugural budget, IHT remains a glistening pot at the end of the rainbow for a Chancellor looking to bring in cash. Receipts continued to increase in September, with the latest figures showing HMRC has collected £406.3 million so far this tax year.”
And this is only set to rise further in the years ahead if rumours of changes to Inheritance Tax are true. Regardless of what is announced, ensuring you and your family plan both suitably and early remains important, and trusted advisers are there for those looking to navigate the complexities.”
Paul Barham, Partner at Forvis Mazars said that inheritance tax is the “talk of the town” with the number of estates paying IHT increasing over the years due to frozen thresholds and increasing asset prices. He continued:
“This has added to the Treasury’s finances and everyone is now wondering what’s next.
Given the uncertainty over how the Government might look to change IHT legislation, and that IHT planning typically involves significant decisions, knee jerk reactions are not wise. Those families wary of potential changes, who are already planning, should make use of the allowances available under the current system.”
