Inheritance Tax take increases by 18%

     Inheritance Tax take up 18% on this time last year

New data released by HM Revenue & Customs (HMRC) has revealed inheritance tax receipts are up 18% year-on-year. 

Total receipts for the financial year up to January sit at £5.9 billion – £900 million higher than the £5 billion seen last year.

This rise is largely driven by the incessant house price growth over the course of 2020, 2021, and 2022. It also comes against a backdrop of reports of HMRC “targeting bereaved families” with inheritance tax raids on estates of particularly high value.

Rachael Griffin a tax & financial planning advisor said Inheritance tax is proving “increasingly lucrative” amidst the Government’s continued freezes on tax allowances and thresholds:

“Inheritance tax has historically been considered a tax for only the very wealthy, but the current freeze coupled with inflated house prices has seen far more people caught by the net. Even those who may not consider themselves wealthy could now end up paying inheritance tax as their property value has grown so much.”