IHT Receipts reach £6.8bn in April to February

The Treasury raked in £6.8bn in inheritance tax receipts in the eleven months from April 2023 to February 2024, up £400m compared with the same period a year earlier.

Financial advisors the Wealth Club said the government’s inheritance tax take seems to be increasing thanks largely to years of house price increases, especially in London and the south-east, pushing families that probably wouldn’t consider themselves wealthy, over the inheritance tax threshold.

For those that are picking up the ‘death tax-tab’, Wealth Club suggests the average bill could increase to £240,000 this 2023/24 tax year, with over 31,000 families having to hand over part of their inheritance to the taxman. This would be a steep 12% increase from the £214,000 average paid just three years ago and a 15% rise in the number of estates paying the tax.

Nicholas Hyett, investment manager at Wealth Club said: “One in every 25 estates pay inheritance tax, but the freeze on inheritance tax thresholds, paired with inflation and decades of house price increases is bringing more and more into the taxman’s sights.

“No one likes to pay more tax than they need to, and Inheritance Tax is among the least popular of all taxes. But with a little planning, there are a number of perfectly legitimate ways to reduce your liability – including some that should be front of mind as we approach the end of the tax year.”