£2.0 billion was collected by the Treasury through the first quarter of the 2023/24 Financial Year – an 11% increase on the total through the same period last year and surpassing the previous peak of £1.8 billion in Q3 2022/23.
The £795 million of inheritance tax receipts in June 2023 also marked a monthly all-time high.
The OBR’s latest forecasts suggest IHT will raise £7.2 billion this Financial Year and as much as £8.4 billion by 2027/28 yet rumours have emerged 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: “The Inheritance tax juggernaut is picking up pace setting monthly and quarterly record highs for the Treasury. In the opening quarter of this financial year, inheritance tax generated around £22 million every day for the government’s coffers..
“The frozen thresholds and property price increases during the pandemic are still feeding into the system, so as a result the government looks set to receive more from inheritance tax for the foreseeable future. This is reflected in OBR estimates which suggest by 2027/28 it will be generating over £8 billion a year.
“But with a general election looming, tax receipts are not this government’s only concern and rumours are swirling that the government could take a radical step to scrap inheritance tax as it looks to curry favour with the voting public.
“Regardless of which way the political breeze blows, these rising inheritance tax 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.”
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