HMRC claim £6.4 billion in Inheritance Tax

HMRC claim £6.4 billion in Inheritance Tax

HMRC inheritance tax receipts have risen nearly £1 billion from the year before taking this to a record £6.4 billion in the financial year 2022 to 2023.

The previous year’s inheritance tax receipts prove that IHT planning is crucial for the keepsake of your family and to protect your estate.  In 2019 to 2020 HMRC IHT receipts were £5.1 billion, 2020 to 2021 were £5.3 billion and 2021 to 2022 were £6.1 billion.  The Treasury’s forecast is estimated to soar by £3 billion over the original forecast between 2022/23 to 2027/28.

The reason for the continued IHT rise is the nil-rate band threshold of £325,000 per person has not changed since April 2009 and remains frozen till at least April 2028.  Generally, a family’s property is the biggest asset a family will own and with inflation rates growing the market value of your family home could rise above the £325,000 threshold leaving you subject to IHT.

If inheritance tax could be a problem for you and your family then please contact Tax Advisory UK to speak with a Chartered Tax Advisor who can advise on what strategy to use to ensure the 40% IHT is saved.

For more information on Inheritance Tax please click here and please contact Tax Advisory UK to discuss your IHT planning immediately.

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HMRC claim £6.4 billion in Inheritance Tax

Inheritance tax freeze could push 10,000 families over the IHT threshold

The Chancellor of the Exchequer, Jeremy Hunt, could extend the inheritance tax Nil Rate Band freeze from 2025-26 to 2027-28 in the Autumn statement on November 17th.  

Hunt is planning to raise £54 billion through tax rises and feels that the extended IHT threshold freeze could contribute to around £500 million for the treasury from grieving families.

Along with the recent inflation increase, by keeping the tax-free thresholds at the same levels, the tax being paid on possible inheritance tax, income tax, capital gains tax and pensions could generate billions of pounds. 

Rishi Sunak originally froze the £325,000 IHT threshold when he was Chancellor until 2026.  An estimated 10,000 families could be pushed over the IHT threshold essentially contributing to the UK’s most hated tax.

As it stands, if your combined estate of properties, investments and shares total £1 million, you can subtract the £325,000 IHT threshold leaving £675,000 which can be taxed at 40%.  The tax needing to be paid would be £270,000, leaving your family with £405,000 and the £325,000 exemption rate.  The total of your estate that your family would inherit upon your passing would be £730,000. 

For more information on Inheritance Tax please click here and please contact Tax Advisory UK to discuss your IHT planning immediately.

Tax Advisory UK Google Map

Where we are

124 City Road, London, EC1V 2NX

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0203 965 3892

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