The quantity of households who paid inheritance tax has elevated by 13% to 31,500 within the yr to April 2023, the most recent official figures present.
HM Revenue & Customs statistics present that the full inheritance tax invoice elevated by 12% or £0.7bn to £6.7bn in 2022/23.
The share of UK deaths leading to IHT being charged was 4.62% – a rise of 13% or 3,700 on the earlier tax yr.
The Office for Budget Responsibility forecasts whole IHT liabilities for 2024/25 to rise 11.6% on the earlier yr to £8.4bn, whereas receipts knowledge exhibits HMRC has to date taken £8.2bn for that interval.
The OBR additionally forecasts that within the present 2025/26 tax yr IHT will increase £9.1bn
Evelyn Partners head of property planning Ian Dyall says: “This knowledge actually simply confirms what we already know: that extra households are incurring inheritance tax liabilities, and extra property in every property have gotten topic to tax – even earlier than the IHT measures introduced on the final Budget take impact.
“As asset costs, particularly equities and property, proceed to rise the frozen nil-rate bands provide much less and fewer safety towards IHT and households that take no steps to mitigate their liabilities will both get drawn into the scope of IHT or have the tax levied on a larger proportion of their property.”
Just Group director Stephen Lowe says: “The proportion of deaths liable to Inheritance Tax continues to creep ever upwards feeding on the continued freeze to thresholds and rising asset values.
“Reforms introduced on the Autumn Budget 2024 are anticipated to considerably speed up each the quantity and proportion of deaths that set off IHT prices.
“It is estimated that round one in 10 deaths (9.5%) shall be topic to Inheritance Tax by the top of the last decade (2029/30) as these fiscal reforms kick in and pull ever extra individuals into the thresholds.
“The removing of the pensions exemption from IHT would be the largest driver of this improve with the OBR projecting that, from April 2027, this variation will deliver 31,200 extra estates into scope of IHT earlier than the top of 2029/30.
“ first step for anybody who thinks their property could also be topic to Inheritance Tax, is to get an up-to-date valuation.
“This ought to embrace a current evaluation of their property wealth and it’ll additionally now be vital to think about how any pension wealth could possibly be taxed upon loss of life.”
