Tax Take from Inheritance Tax to Increase Dramatically

HM Treasury is set to receive £37bn in inheritance tax payments over the next five years, according to estimates from the Office for Budget Responsibility.

Their March 2022 forecast expects intakes of:

  • £6.7bn in 2022-23;
  • £6.9bn in 2023-24;
  • £7.3bn in 2024-25;
  • £7.8bn in 2025-26; and
  • £8.1bn in 2026-27.

In comparison, inheritance tax bills raised £4.8bn five years ago, meaning that the UK government is on track to nearly double the annual sum collected by 2027.

You can find the latest forecast here:

https://obr.uk/docs/dlm_uploads/CCS0222366764-001_OBR-EFO-March-2022_Web-Accessible-2.pdf

Have a look at Table 3.4 on page 95 and paragraphs 3.53 and 3.54 on page 112.

Stephen Parnham