The latest figures from HM Revenue and Customs (HMRC) show that inheritance tax receipts increased to £3.9 billion in the six months from April 2023 to September 2023.

This is a £400 million increase from the same period in the previous year, and continues the upwards trend over the last decade.

For those that are picking up the ‘death tax-tab’, Wealth Club calculations suggest the average bill could increase to £233,000 this 2023/24 tax year, with over 30,000 families having to hand over part of their inheritance to the tax man.

This is a steep 9% increase from the £214,000 average paid just three years ago and a 12% rise in the number of estates paying the tax. This increase is being fuelled by years of soaring house prices and frozen allowances.

Nicholas Hyett, Investment Manager at Wealth Club said, “Inheritance tax has found itself the unexpected centre of the UK’s political battlefield.

The tax pulled in over £7bn for HMRC last year and the most recent set of numbers suggests that’s set to climb again. Both the average bill and the number of families paying inheritance tax are also set to rise in the years ahead according to Wealth Club research.

Depending on your political position that is either a good or a bad thing. But, whether you think inheritance tax is a great means of wealth redistribution or an unfair tax on those who’ve already been taxed once – the future of the UK’s most controversial tax is worth arguing about.

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