Inheritance tax receipts reached £2bn ($2.57bn, €2.31bn) between April and June 2023, HMRC data has shown.
This is a £200m increase from the same three-month period last year as inflation, house price increases and tax freezes have pushed increasing numbers of families above the threshold for inheritance tax (IHT).
In 2019/20, IHT bills averaged over £200,000 for those who paid them, with the total IHT take increasing since then totalling £7.866bn last year.
Laura Hayward, tax partner at Evelyn Partners, said: “While reports circulate around Westminster that the Conservatives are considering scrapping IHT as part its manifesto pledge at the next general election, the stark current reality is that more families are being dragged into paying the tax as each month goes by.
“Families should not be distracted by IHT being used as a political football and instead focus on their tax planning to ensure they don’t pay more tax than they need to. They can minimise the chances of being hit by a sizeable IHT bill under the current regime by taking the appropriate action now. “
Julia Peake, tax and estate planning specialist at Canada Life, also commented: “The effective use of trusts and gifting, and the right retirement income strategy, can all help minimise the value of your estate when it comes to calculating any IHT liability, ensuring it can be passed on to your beneficiaries as efficiently as possible.”
