22 Jul 2024
Data published by HMRC has revealed that inheritance tax (IHT) receipts reached £2.1 billion between April and June 2024.
The latest figure is £83 million higher when compared to the same period last year. More taxpayers were liable to pay the tax as a result of a freeze on thresholds and an increase in asset prices.
Additionally, the nil-rate band and the residence nil-rate band (RNRB) have not been adjusted for inflation or to take rising property values into account, meaning more estates are becoming liable to IHT.
Nicholas Hyett, Investment Manager at the Wealth Club, commented: 'IHT remains a political hot potato. The new government has promised not to raise a whole host of taxes, but inevitably there are spending pledges that need to be met. That means those taxes that haven't been officially ringfenced, including IHT, are firmly in the spotlight.'
Mr Hyett stated that reforms to non-dom rules are potential sources of an IHT windfall, but these reforms would need to be 'handled sensitively'.