IHT receipts see record year in 2018/19 at £5.4bn

Inheritance tax (IHT) receipts have reached another record year, reaching £5.4bn in the 2018/19 tax year, according to data published by HM Revenue & Customs (HMRC).

In its HMRC Tax & NIC Receipts Monthly Report, the revenue revealed that IHT receipts increased by around £160m in just a year, trumping last year’s record of £5.2bn.

According to Canada Life wealth management and tax specialist Neil Jones, the data published today “continues a consistent, long-term trend of increases that shows no little sign of slowing down”.

“Just as consistent is that a lot of these payments are preventable. Death and taxes may be the only two certainties in life, but with careful planning around the former, some of the latter is unnecessary. It’s crucial to use any reliefs, exemptions and allowances,” Jones said.

In its publication, HMRC noted that monthly IHT receipts for April 2018 to March 2019 are 3.1 per cent higher than in the same period last year. The revenue stated that the number of receipts in March 2019 was “particularly high”, though it is too early to determine what caused the anomaly.

The Canada Life specialist has urged people to begin planning early, arguing that it is “essential”.

“There’s a range of trusts available that can enable clients to make sure more of their money goes to beneficiaries whilst reducing the amount of tax payable when they die. Some of these trusts work on a seven year, rolling basis, so even though they’ve been able to – tax efficiently - pass on money once, they can do it again,” he concluded.

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