Inheritance tax receipts rise by £4.1bn

Nov 30, 2022

The Government collected £4.1 billion of inheritance tax from April to October this year, representing an increase of £500 million compared to the year before, HMRC statistics show.

The increase in inheritance tax receipts comes days after Chancellor Jeremy Hunt's announcement that the tax threshold would be frozen for a further two years until 2028.

According to projections from the Office for Budget Responsibility, inheritance tax receipts will increase from £6.1bn over 2021/22 to £7.8bn by the 2027/28 tax year, a rise of 28%.

HMRC also states that "record high receipts in June can be attributed to a small number of higher-value payments than usual."

The current nil-rate band of inheritance tax has remained at £325,000 since 2009 after being frozen numerous times.

Andrew Tully, technical director at Canada Life, said:

"The stealth tax increase will mean more people being caught by the inheritance tax trap and having to complete returns and pay on their estates in the near future.

"The importance of early planning and using trusts, so the Treasury is not one of the largest beneficiaries from your estate is so important, and trusts give you control over who benefits from your assets."

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