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There have been fresh calls for the new Labour government to look at reforming inheritance tax after the Treasury collected £2.1bn in receipts from April to June.
This was £83m higher than the same period last year, figures from HMRC show. In June alone, the government collected £701m in IHT.
Experts believe IHT receipts will continue to rise due to a combination of the housing market holding its ground and thresholds remaining frozen.
Last year, former chancellor Jeremy Hunt froze the threshold above which people must pay IHT until 2028.
The freeze on the nil-rate band – which is currently £325,000 — has not been changed since it was first introduced by a Labour government in 2009.
The residence nil-rate band, on the other hand, was introduced on a phased basis between 2017 and 2020.
Tim Snaith, partner at Winckworth Sherwood, said: “The nil-rate band (NRB) and the residence nil-rate band (RNRB) have not been adjusted for inflation or rising property values, which means more estates are becoming liable for the tax as asset values increase.”
Rosie Hooper, chartered financial planner at Quilter Cheviot, said data from the Office for Budget Responsibility predicts that by 2028-29, the proportion of deaths leading to the payment of inheritance tax will increase to 6.3% – its highest level since the 1970s.
“Given these projections, the need for expert financial planning remains crucial. Financial planners can help manage an estate by setting up trusts, making use of gift allowances, and using a pension to pass on wealth to family members in a tax-efficient way,” said Hooper.
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