In figures published on Friday, the Revenue confirmed that receipts from Inheritance Tax for the first quarter of this financial year came to a staggering £2.1 billion. This figure is £83 million higher than for the same quarter, April to June, last year and represents a huge increase for the Revenue’s coffers.
The Revenue itself suggests that rising property prices, coupled with the freeze on Inheritance Tax-free allowances at their 2020/2021 levels up to at least 2027/2028 and beyond, have accounted for this.
With all this pushing more estates into being taxable, it seems likely that this windfall will continue for the Revenue as the year goes on. No doubt, like the Spring period by itself, 2024 as a whole will exceed expectations for Inheritance Tax receipts.
And what is the future? Even with the allowances remaining frozen for the time being, there are rumours that the new Labour government will consider more wide-ranging changes, which will drag even more estates into the charge.
We have a handy summary of these potential changes here but will keep our ear to the ground for you for anything announced as time goes by. All eyes will be on the Chancellor come the Autumn Statement, if nothing before.
How Tozers can help
In the meantime, as increasing Inheritance Tax seems to be a relative certainty for the future, it is best to put some thought into your own plans and act now. Please contact our experienced advisors to consider what you can best do to protect yourself and your family.
Our inheritance tax and estate planning experts in the Wealth Management team help you plan for the future, with straightforward legal advice to protect yourself and your family.
