Investment - Articles - Inheritance Tax rakes in another GBP644 million in August

 The OBR’s latest forecasts suggest IHT will raise £7.2 billion this Financial Year and as much as £8.4 billion in 2027/28 yet rumours suggest the government is looking at promising to scrap the tax ahead of the next General Election.

 Stephen Lowe, group communications director at retirement specialist Just Group, commented: “Inheritance Tax receipts continue to swell the Treasury’s coffers as it generates record sums year on year. Frozen thresholds and property price increases are catching thousands more estates in the Inheritance Tax net.

 “This Spring, HMRC significantly increased its prediction of the number of new estates expected to be dragged into paying Inheritance Tax in 2021 to 2028. It now estimates that almost 50,000 new estates will incur the tax, a near four-fold increase compared to their previous estimate in November 2022.

 “The increase in receipts should act as a warning for people to remember to assess the entire value of their estate, including an up-to-date valuation their property. Professional, regulated advice can also help people work out the total value of their estate, calculate how much tax they may be likely to owe and understand what options they have to manage that tax bill.”

 HMRC Statistics for August 2023