Risen by £728 million and still rising

The IHT Boom

You can’t open a newspaper without reading about the return of inflation.

An article caught my eye recently. It contained some figures which I think have important implications.

In the year to April, an extra £728 million was collected in inheritance tax (IHT) compared to the previous 12 months.¹  Not an insignificant increase!

With inflation running at a 40-year high² and IHT allowances frozen, receipts will only climb further. Families are forecast to pay £37 billion in IHT over the next five years.³

Some clients may be dragged into the IHT net as the value of their home and assets increase so it is important to prioritise estate planning.

¹HMRC tax receipts and National Insurance contributions for the UK, HMRC, 26 April 2022
²Consumer Price Inflation, Office for National Statistics, May 22
³Economic and fiscal outlook, Office for Budget Responsibility, March 2022

*Octopus Investments June 2022

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