Over £560m collected in IHT in February

The amount of inheritance tax (IHT) collected in February increased by £400m year-on-year, with £564m collected over the course of the month.

As a result, a record collection is expected by the end of the financial year.

HM Revenue and Customs (HMRC) has revealed that since April last year, £6.8bn has been collected in IHT, which is a 6.5% increase on the previous financial year.

In the 2022/23 financial year, a record total of £7.1bn was collected in IHT.

However, this is expected to be beaten, with just £263m needed to be collected in March for the record to be broken. Office for Budget Responsibility (OBR) forecasts have previously indicated the tax could raise over £7.5bn for Treasury coffers this time around.

Group communications director at Just Group, Stephen Lowe, said: "With one-month of the 2023/24 financial year to go, IHT looks certain to record another all-time receipts high.

"Despite speculation that the Chancellor would tinker with IHT in the Spring Budget it was left alone – and with public finances so tight, it is little wonder. Frozen thresholds and the increase in property values have dragged more estates into paying the tax and we would encourage people to assess the entire value of their estate, including an up-to-date valuation of their property, and familiarise themselves with the IHT rules.

"Professional, regulated advice can help people work out the total value of their estate, calculate how much tax they may be likely to owe and understand what options they have to manage their potential tax liability."

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