Fuelled by record June receipts and rising interest rates
The government netted £2.6bn from inheritance tax (IHT) between April and July 2023, which was £0.2bn higher than in the same period a year earlier, latest official statistics show.
Figures from HM Revenue & Customs (HMRC) showed that receipts in June 2023 were the highest monthly total on record and could also be due to possible effects from the recent rise in interest rates.
HMRC said it is obliged to charge on overdue tax bills following the recent increases in the Bank of England base rate.
Canada Life tax and estate planning specialist Julia Peake said: “With July receipts for inheritance tax up by almost 6% compared to the same time last year, and June the highest monthly total on record, HMRC is on course for a year of record receipts from IHT.”
“The OBR has forecasted that IHT will raise £7.2 billion for The Exchequer this financial year. Housing market buoyancy, despite the recent downturn in the market, and tax thresholds being frozen until 2027-28 are driving the record tax take.
“Simple steps families can take include having up-to-date wills in place and using lifetime gifting and trusts. Seeking advice from a regulated financial adviser should be the first important step.”
Sahar Nazir (Professional Adviser)