Latest figures from HM Revenue & Customs (HMRC) show that Inheritance Tax (IHT) receipts totalled £2.9bn between April and August 2022, an increase of 11% (£300m) compared to the same period in 2021. Receipts are now at their highest level on record, with receipts for August alone totalling £576m. This means that all five months in the current tax year have seen receipts surpass half a billion pounds for the first time ever.
Quilter Tax and Financial Planning Expert Shaun Moore said IHT is proving to be “very lucrative” for the Treasury these days, adding, “In years gone by, although universally hated, IHT was something only the very wealthy suffered. However, now partly because of soaring property prices more and more people are getting caught in the IHT net.”
It is worth seeking professional financial advice to ensure you understand your estate and make the most of your allowances to help mitigate your IHT bill where possible. Tax treatment varies according to individual circumstances and is subject to change.