Inheritance tax receipts have climbed again to reach £2.8bn for April 2024 to July 2024, data from HM Revenue and Customs has revealed.
The data, HMRC tax receipts and National Insurance contributions for the UK, showed this was an increase of £0.2bn on the same period last year.
Quilter tax and financial planning expert, Rachel Griffin, suggested these findings, ahead of first Labour’s first autumn budget, will “rekindle” debates about whether this tax will be increased as the government attempts to shore up public finances.
“Speculation is rife that the chancellor might introduce changes to IHT, particularly targeting Agricultural Property Relief (APR) and Business Property Relief (BPR),” she explained.
“As Labour navigates these complex issues in the upcoming budget, there is a strong argument for simplifying the IHT system and making it more appealing to gift during your lifetime.
“The current system’s complexity often leads to confusion and inequities, with wealthier estates better equipped to navigate and minimise tax liabilities.”
Additionally, Just Group group communications director at retirement specialist Stephen Lowe, described the data as “another boost for the Treasury”.
However, he cautioned that, with the Autumn Budget in two months’ time, it seems “inevitable” that the chancellor will at the very least run her slide rule over inheritance tax to see if it is a way to raise more revenue.
“The combination of frozen thresholds and property price rises are already driving a record inheritance tax take, with receipts doubling compared to 2009 when the tax-free threshold was frozen,” he explained.
“We will have to wait and see if Rachel Reeves decides that inheritance tax can work even harder for the Treasury.”
Additional findings
This increase in IHT receipts led to gross HMRC tax and national insurance contributions receipts reaching £277.7bn.
This represented a rise of £5.6bn between April to July 2024 when compared to the same period in the previous year.
Overall cash receipts were higher mainly from income tax, capital gains tax, and NICs, which increased by £1.5bn, business taxes, which increased by £2bn, and stamp taxes, £0.7bn.
In percentage terms, receipts were higher for stamp taxes and air passenger duty, which increased by 15 per cent and 10 per cent respectively.
tom.dunstan@ft.com
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