Inheritance tax (IHT) receipts for April 2022 to February 2023 were £6.4bn, which is an increase of £0.9bn compared to the same period last year, latest government data showed.

Statistics from HM Revenue & Customs (HMRC) revealed February 2023 receipts totalled £531m meaning the tax take for 2022/23 to date stands at £6.4bn.

This figure already beats the £6.1bn received by the Treasury throughout the entire 2021/22 financial year by £353m, provider Just said.

It comes after last week’s revision by the Office for Budget Responsibility which projected future IHT with estimates that between 2022/23 and 2027/28, the Treasury would net almost £3bn more than previously forecast.

Just said the projected total IHT tax take by 2027/2028 sits at £45bn, compared to the previous estimates of £42.1bn. It added that by 2027/28, it is estimated that 6.7% of deaths, or about 47,000 deaths, would trigger an IHT charge, up from an estimated 4.1% in 2020/21.

‘Pincer movement’

Just Group communications director Stephen Lowe said: “The Chancellor is benefitting from the pincer movement of recent rises in property prices and frozen thresholds. IHT is an increasingly valuable source of income for the government which has raked in a record sum even with one month of this tax year’s receipts yet to be collected.

“The Treasury appears to be banking on ever greater receipts from IHT. Buried in the small print of the Spring Budget was confirmation that the government expects to scoop up nearly an extra £3bn from IHT over the next six years.”

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