Inheritance tax receipts are set to have a ‘record breaking’ year as they continue to rise, according to HMRC data.

In its monthly tax receipts and national insurance contributions bulletin, HMRC revealed IHT receipts for April 2023 to January 2024 hit £6.3bn, a £0.4bn rise compared to the same period last year.

Andrew Tully, technical service director at Nucleus said: “It looks set to be another record-breaking year for IHT receipts.

“And with the Office of Budget Responsibility predicting the IHT take will be £8.4bn in 2027/28 receipts are set to continue growing strongly, despite slower house price growth, and may well exceed those OBR predictions, given this year’s receipts are on track for around £8bn.”

The nil-rate band has been frozen at £325,000 since 2009, and coupled with rising house prices and growth in investment assets, this has caused more estates to be dragged over the threshold, according to Laura Hayward, tax partner at Evelyn Partners.

She added: “Minor property downturns such as we’ve seen in the last year or so will do little to dent this trend. And even though the Covid effect on mortality, which was at one point increasing the overall IHT take, must now have all-but played out, IHT receipts continue to rise.”

Rise in IHT receipts contributed to overall HMRC tax receipts for April 2023 to January 2024 hitting £695.1bn, £33.6bn higher than the same period last year.

Stacey Love, tax and estate planning specialist at Canada Life said “all eyes and ears” would be on the Spring Budget taking place next month to see if chancellor Jeremy Hunt will propose any changes to IHT.

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