Data1 has shown that Inheritance Tax (IHT) receipts have continued their ascent, with £2.8bn received in the April to July period this year. This figure is a substantial £0.2bn increase on the same period in the previous tax year (2023/24).
Frozen thresholds continue to take their toll as IHT, once a tax reserved purely for the super wealthy, impacts more of us. Property values have generally risen over the last decade or so, driving record IHT levels.
Whether the government chooses to focus on IHT in the upcoming Autumn Budget remains to be seen. Calls for simplification of the tax have been rife for years. With such high receipts the Chancellor may choose to make the tax work even harder for the Treasury. Whatever the future holds for IHT we will keep you informed of developments and work with you and your family to pass wealth down the generations as efficiently as possible, developing a strategy to help secure your beneficiaries’ financial future.
1HMRC, 2024
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.
