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Inheritance tax receipts are on course for another record-breaking year, with £700m collected in April alone.
This figure is £85m, or 7.2%, higher than the same month last year.
Revenue collected by the Treasury from inheritance tax has increased over time in real terms, from around £2bn in 1980/81 to £7.5bn in 2023/24.
It is expected that it will reach almost £9bn by 2028/29.
Evelyn Partners tax partner Laura Hayward said: “Even if thresholds and rates just remain frozen, the IHT net will be cast much wider and draw in families across the UK with fairly modest levels of wealth in real terms.
“The Office for Budget Responsibility forecasts that the share of deaths resulting in the payment of inheritance tax will rise to 6.3% by 2028–29, the highest level since the 1970s.
“That proportion was as low as 2.7% in 2009/10.
“The haul for the Treasury from IHT is likely to escalate in the coming years due to a particular demographic bump.
“As the wealthy baby boomer generation dies off in the next couple of decades, there will be a massive transfer of wealth.”
Quilter tax and financial planning expert Shaun Moore said during election season, “It would be sensible for either party to reassess the UK’s IHT landscape and change what is no longer fit for purpose.”
• Wealth of Advice can help with all aspects of estate planning, to ensure more of your wealth is distributed to those you care about, rather than substantial sums being taken by the taxman. We offer impartial advice, always tailored to the individual client’s needs and circumstances. For a free copy of our guide to Estate Planning, visit https://www.wealthofadvice.co.uk/financial-guides Alternatively, contact us for a free, no-obligation consultation. Tel. 0191 384 1008 or email enquiries@wealthofadvice.co.uk
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