Inheritance tax receipts within the yr to March hit 7.5bn, a new historical past and way over £400m higher than 12 months again.
The decide tops closing yr’s £7.1bn all-time for the tax, in accordance to HM Revenue & Customs.
The thresholds of this tax have been frozen since 2009 and usually are not owing to be reviewed until April 2028, when residence charges have risen.
Inheritance tax is established at 40% on the time the property of an property main £325,000.
Some forecasts say inheritance tax receipts might prime rated £9.5bn proper earlier than the conclude of the ten years.
Chancellor Jeremy Hunt has confronted repeated calls to abolish the tax from Conservative supporters, and the government was comprehended to have seen as which features a put together to scrap it in closing yr’s Autumn Assertion prematurely of choosing on Nationwide Insurance insurance policies reductions in its place.
Canada Daily life advanced supervisor, tax, trusts and property organizing Stacey Appreciate suggests: “Inheritance tax is the tax present that retains on providing as file receipts have been banked by HMRC prior to now tax calendar yr.
“While the sample is simply on the way in which up, inheritance tax carries on to be a largely a discretionary tax.
“Many estates could presumably not must pay again inheritance tax in any respect if the totally different exemptions and presents are made use of appropriately, and that is an area of financial planning the place it significantly does make notion to seek out applicable monetary recommendation.”
Quilter tax and economical planning specialist Rachael Griffin provides: Irrespective of considerable hypothesis that the government would appear to enact inheritance tax reform in the middle of the final yr, up to now all has remained tranquil on this entrance and this morning’s figures illustrate simply why the Chancellor would have been eager to depart it nicely alone.
“Nonetheless, the ever-expanding tax income from inheritance tax supplies a conundrum for the authorities as we technique the traditional election, and it’s completely an place to look at for because the totally different bash manifestos begin out to look.
“The lowering of the headline charge of inheritance tax from 40% would doubtless be achieved with acceptance from core Tory voters. Nonetheless, further generally, it will probably show unpopular given it will benefit the wealthy at a time when so numerous throughout the nation go on to battle with the cost of residing.”
