Inheritance tax (IHT) receipts for April 2023 again crept higher reaching £0.6bn, which is £0.1bn up on the same period last year, latest figures reveal.

IHT receipts were £5.3bn in 2020/21 and £6.1bn in 2021/22 demonstrating how “increasingly lucrative” the tax is for the government, according to Just Group.

It also pointed out that the Office for Budget Responsibility’s latest forecasts suggested IHT would raise £7.2bn this financial year and as much as £8.4bn by 2027/28 as more estates get caught by the frozen thresholds.

Just Group communications director Stephen Lowe said: “The past two years have seen increases of 14% and then 17% in IHT receipts which are growing by nearly £1bn every 12 months. This year has already got off to a hot start with receipts in April up £90m compared to the same month last year.
“The increased tax hauls are likely being driven by a combination of frozen thresholds and rising property prices around the time of the pandemic. With the existing thresholds due to remain in place until 2027/28, the Treasury looks set to continue banking healthy inheritance tax receipts.

“The figures should act as a warning for people to remember to assess the value of their estates, including an up-to-date valuation their property. Professional, regulated advice can also help people work out the total value of their estate, calculate how much tax they may be likely to owe and understand what options they have to manage that tax bill.”

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