New data out today from HRMC shows that IHT receipts for April 2021 to December 2021 were £4.6 billion – £0.6 billion higher than the same period a year earlier.
Julia Rosenbloom, tax partner at Smith & Williamson, part of wealth management and professional services group Tilney Smith & Williamson, commented: “The latest reported year-on-year rise in IHT collections will be welcomed by the Chancellor who needs every pound he can get at the moment to pay for the government’s ambitious spending commitments.
“One of the key factors behind the latest hike in IHT receipts is likely to be the fact that both the nil rate band and residence nil rate band have been frozen until at least April 2026, resulting in many families receiving increased IHT bills as more estates are brought into scope on the back of rising property and share prices.
“We are still waiting to hear the confirmed date for the Chancellor’s next Budget, but given it could be just two months away, now is the time that people should be giving careful consideration to their tax planning and making the most of current allowances before any possible changes are introduced. In the next Budget it is quite possible that changes could be made to personal taxes, which may ultimately affect the level of IHT payable by families. There are a number of areas of tax planning that may help reduce or eliminate an IHT bill that families could consider, such as investing tax-efficiently and making gifts to family members which could allow more of your assets to be passed onto the next generation.”