Inheritance tax receipts reach £5.2bn in eight months, HMRC reports

Inheritance tax receipts increased to £5.2bn in the eight months (inclusive) from April 2023 to November 2023, according to the latest figures from HM Revenue and Customs issued today on 21 December 2023.

This represents a £400m increase compared with the same period in 2022 and continues the sharp upward trend over the past decade.

Currently, roughly 4% of estates pay inheritance tax, although factors such as the freeze on thresholds, decades of house price increases, and high inflation are bringing an increasing number of estates into charge as these figures illustrate.

The IFS estimates that the proportion of deaths resulting in inheritance tax is set to grow to over 7% by 2032/33.  By 2032/33, a predicted one in eight or 12.5% of people will have inheritance tax due either on their death or their spouse or civil partner’s death.

Last year the tax raised more than £7bn for HMRC but could hit £9.5bn before the end of the decade.

Wealth Club calculations suggest the average bill could increase to £233,000 in the current 2023/24 tax year, with over 30,000 families having to part with a percentage of their inheritance to HM Revenue & Customs. That would represent a steep 9% increase from the £214,000 average paid a mere three years ago and a 12% rise in the number of estates paying the tax.

Here is the HMRC source issued on 21 December

https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk/hmrc-tax-receipts-and-national-insurance-contributions-for-the-uk-new-monthly-bulletin#inheritance-tax-iht

 

Stephen Parnham