The number of estates paying inheritance tax is estimated to have increased by 15.9 percent over the last three years.
Inheritance tax receipts reached £700million in April, according to data released by HM Revenue and Customs on 22 May 2024 (see below). That is £85million higher than in April of the previous tax year, continuing the upward trend over the last two decades.
With such a strong start to the new tax year, it is thought that predictions of inheritance tax receipts exceeding £9.5billion by the end of the decade are looking increasingly realistic.
Some calculations suggest the average bill could increase to £243,000 in the 2023/24 tax year, with over 31,000 families having to hand over a significant part of their inheritance to the HM Revenue & Customs. This is a steep 13.3 percent increase from the £214,000 average paid just three years ago
As the first tax receipts of the new tax year indicate, the inheritance tax take has already risen by £85million. It is therefore crucial that families take the time to look at their financial situation and tax liabilities and plan accordingly. Inheritance tax planning has never been more important.
Have a look at the latest figures and draw your own conclusions.
