HMRC data reveals year-on-year increase in IHT receipts

by | Nov 21, 2023

Share this article

New data published today by HMRC shows that IHT receipts for April to October 2023 were £4.6 billion, which is £0.5 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 Treasury will welcome the news that IHT receipts have shown yet another year-on-year increase. All eyes are now on whether IHT will get a mention in the Chancellor’s Autumn Statement tomorrow. While abolishing IHT completely would be a popular move with many, it seems more likely that the government will reserve this as an idea for a Conservative election manifesto pledge.

 
 

“If the latest reports are to be believed, cuts to IHT are likely to take a backseat to other possible tax changes in tomorrow’s Autumn Statement. However, with Jeremy Hunt noting that ‘everything is on the table in an Autumn Statement’ it’s not impossible that we could still see changes of sorts to the IHT charging regime announced tomorrow.

“There has been some speculation that there could be a cut to the rate charged, which is currently levied at 40% on estates above the value of £325,000. Some have also suggested that the main nil-rate band (£325,000) could be combined with the residential nil-rate band allowance (currently £175,000) to give a total IHT-free allowance of £500,000.

“Many will be hoping for changes here given that more and more families are being dragged into paying IHT by stealth as a result of the frozen allowances*, inflationary growth of asset values and other factors. This can be a complex area so taking professional advice can be one of the ways that can help families understand how to manage their money tax efficiently and help ensure they don’t pay more tax than they need to.

 

“Making gifts to family members or investing tax-efficiently can help reduce or eliminate IHT bills. 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.

“We know the many families want to ensure that gifts are used in a responsible way which can make setting up trusts an effective tool for tax efficiently passing on assets to the next generation in a controlled way.”

**the nil rate band remains frozen at £325,000 until at least April 2028

 

Share this article

Related articles

Be mindful of the market cycle shuffle 

Be mindful of the market cycle shuffle 

By Alison Savas, investment director of Antipodes Partners  The global equity index has risen 5% this year but performance at the headline level masks the concentration in markets. On an equal weighted basis, the index is down almost 6% over the same period (this is...

Black Friday takes on the world

Black Friday takes on the world

Written by John Plassard, senior investment specialist at Mirabaud Group Thanksgiving is an age-old American tradition. Every year from 1789 to the present day, Americans have celebrated the holiday over a meal of turkey. The origins of this tradition can be traced...

Consumers bring boost to fragile UK economy: T. Rowe Price

Consumers bring boost to fragile UK economy: T. Rowe Price

Written by Tomasz Wieladek, chief European economist at T. Rowe Price UK consumer confidence improved sharply in November, after the large fall in October. There are several reasons for this improvement. First, interest rates across the whole yield curve declined...

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, designed to fit perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode

x