Inheritance tax (IHT) receipts hit £2.8bn in the first six months of the tax year, and the Office for Budget Responsibility (OBR) has estimated that they will increase further to reach a record £5.4bn by the end of this tax year.
The OBR calculated that the £5.4bn would represent 0.7 per cent of all receipts and is equivalent to 0.3 per cent of national income. In 2017/18, approximately 22,600 estates were liable to IHT, which is around 3.8 per cent of the total.
The figures have been published by HM Revenue & Customs (HMRC) just days before the budget, and could be the last published before a detailed report commissioned by the chancellor is released by the Office of Tax Simplification (OTS).
Commenting, NFU Mutual chartered financial planner Sean McCann said: “The OTS report on inheritance tax is imminent and it’s likely the chancellor will want the recommendations to be part of his Budget considerations.
“Inheritance tax is deeply unpopular and fiendishly complicated. Recent changes have just added to the problem and in many instances the complexity of the rules means that families are missing out. These numbers show people are passing on more and more to the taxman rather than their loved ones.”
The OTS is due to report back on the IHT review in Autumn.
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