Andrew Tully comments on record IHT receipts
HMRC today announced the latest Inheritance Tax (IHT) receipts, within their wider tax receipts document: HMRC tax receipts and National Insurance contributions for the UK (monthly bulletin) - GOV.UK (www.gov.uk)
- Total HMRC tax receipts for the 2023/24 tax year are £827.7 billion, which is £39.1 billion higher than last year.
- Receipts were higher from Income Tax, Capital Gains Tax and National Insurance Contributions (NICs), business taxes and VAT
- Receipts were lower from stamp taxes and Tobacco.
Inheritance Tax
- IHT receipts for 2023/24 are a new record £7.5 billion, which is £0.4 billion higher than last year.
- This continues the strong upward trajectory over the last few years (see graph below).
- The current £325,000 nil rate band has been at that level since 2009. The residential nil rate band was introduced on a phased basis between 2017 and 2020 and potentially gives an additional £175,000 nil rate band (making a total of £500,000) subject to certain rules.
- Both are currently intended to be frozen until 2028.
- Given all of this the need for expert financial planning remains crucial.
Andrew Tully, Technical Services Director at Nucleus said: “These are record IHT receipts following on from previous record highs in each of the last two years. The Office of Budget Responsibility predicts the IHT take will be £9.7bn in 2028/29 which means the impact of this tax is set to continue growing strongly.
Advisers can help manage an estate by setting up trusts, making use of gift allowances, and using a pension to pass on wealth to family in a tax efficient way.”
Enquiries:
Linda Harper
Head of Public Relations - Nucleus Financial Platforms group
E: newsroom@nucleusfinancial.com
T: +44 (0) 7876 145309
Notes to editors:
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