Inheritance Tax receipts for April 2024 to December 2024 are £6.3bn, which is £0.6bn higher than the same period last year. This is according to the latest data from HMRC.
Looking historically over the last three years, higher receipts from March 2022 are expected to be due to a combination of higher volumes of wealth transfers following recent IHT-liable deaths, recent rises in asset values, and the government’s March 2021 and Autumn 2022 decisions to maintain the IHT tax free thresholds at their 2020 to 2021 levels up to and including 2027 to 2028.
The higher receipts in June 2022, November 2022, June 2023, October 2023, September 2024, and October 2024 can be partially attributed to a small number of higher-value payments than usual
Commenting on the figures for 2024, Quilter tax and financial planning expert Shaun Moore said: “This relentless rise is no coincidence. With inheritance tax thresholds frozen until 2030, more families are being pulled into the scope of IHT, and this trend shows no signs of slowing.
“Add to that the significant changes coming in April 2027, when pensions will be drawn into taxable estates, and the government looks set to cash in on an ever-expanding pool of taxpayers.”
He added “Farming families, too, could face tougher times as reductions to Agricultural Property Relief start to bite, potentially forcing some to make difficult decisions about the future of their farms. “
