Inheritance Tax (IHT) receipts for April to July 2025 have been £3.1bn, which is £0.2bn increased than the identical interval final year, in line with the newest figures from HM Revenue & Customs (HMRC).
As Evelyn Partners head of property planning Ian Dyall factors out, the July determine implies that inheritance tax revenues for this financial year so far are working about 6.9% forward of the identical interval final year.
“Monthly receipts information reliably reveals how fiscal drag is bringing extra wealth into the scope of IHT, however the numbers that basically matter for wealthier households are these displaying the general state of the general public funds, as a result of that’s what prompted final year’s Budget overhaul of IHT guidelines, and it’s not unthinkable that the switch of wealth can be on the desk once more on the subsequent Budget.
Dyall highlighted that the dilution of enterprise and agricultural property reliefs doesn’t come into drive till subsequent April, and the inclusion of unspent pension belongings in estates doesn’t happen till April 2027, so we received’t see how a lot cash they convey in by means of the Treasury door till properly after these dates.
Key Advice & Air chief government Will Hale additionally commented on the constant rise in IHT receipts.
“This continues a big upward development, with receipts rising by greater than 50% over the previous 5 years and 2025 set to be a document year when it comes to taxes raised by means of this mechanism.
“Furthermore, bulletins across the inclusion of pension funds throughout the IHT regime, musings across the potential for a restrict to be utilized on lifetime gifting and continued home worth inflation implies that the federal government is demise as key focus for boosting public funds shifting ahead.
Hale warned that many individuals who would fall beneath the standard definition of ‘high-net price’ are actually sleep-walking right into a state of affairs the place their estates can be topic to vital IHT prices.
Last month, HMRC revealed that the whole sum collected in inheritance tax had greater than doubled over the previous decade from £3.8bn in 2014/15 to £8.25bn up to now tax year.
