HM Revenue and Customs is on course to collect a record-breaking £8 billion in inheritance tax this year due to fiscal drag and a lack of even the most basic planning amongst deceased taxpayers.
A few facts.
- HMRC says that receipts in June 2023 were the highest monthly total on record. This record-high month was attributed to the possible effects from the recent rises in interest rates.
- Inheritance tax receipts from April to August 2023 reached £3.2 billion, £0.3 billion higher than the same period last year.
- The total inheritance tax take for the 2022-23 tax year was £7.1 billion, meaning this year’s take is well on course to break new records and could well come close to £8 billion.
- The Treasury has collected £133 million per week in inheritance this tax year so far, up by 10% compared to the same period last year.
This is a good time to take a look at your potential exposure and start to manage that exposure.