New data published today by HMRC shows that IHT receipts for April 2023 were £0.6 billion, which is £0.1 billion higher than the same period a year earlier.
Laura Hayward, tax partner at Evelyn Partners, the leading integrated wealth management and professional services group, comments:
“The latest year-on-year increase in IHT receipts provides more good news for the Treasury. Given the inflationary growth of asset values coupled with frozen allowances, the rise and rise of IHT receipts seems to be unstoppable. The nil rate band remains frozen at £325,000 until at least April 2028 so, as things stand, even more families are expected to be caught by IHT in the months and years ahead.
“Today’s update from HMRC should be a wake-up call for families to give careful thought to their tax planning to ensure they don’t pay more tax than they need to. Families can minimise the chances of being hit by a hefty IHT bill by taking action now.
“There are a number of ways of reducing or eliminating IHT bills, such as making gifts to family members or investing tax-efficiently. Gifts you make to other individuals are generally not subject to IHT unless you die within seven years. There is also an annual gift allowance of up to £3,000 per tax year, and this will not be subject to IHT even if you do die within seven years.”
