The government has taken £4.8bn in inheritance tax (IHT) for the period between April and November this year, new HMRC figures have shown.

This is around £600m more than the same period in 2021, the data revealed.

HMRC has stated that a spike in receipts this November was due to “a small number of higher-value payments than usual”.

IHT thresholds were frozen by a further two years until April 2028 by the government last month, in a move that will likely see more estates caught in the IHT net.

The threshold, or the nil rate band, has been £325,000 per single person since April 2009, while there is also an additional transferrable main residence nil rate band of £175,000 available when passing the family home down to children or other direct descendants. The standard IHT rate is 40% and is only charged on the part of an estate above the threshold.

Commenting on the latest IHT figures, technical director at Canada Life, Andrew Tully, said: “The latest IHT receipts shows we are on for a record breaking year. With thresholds frozen until at least April 2028, more estates will be coming in from the cold and will likely be caught in this widening tax net, and this is despite predicted house price falls in 2023.

“Financial advisers will be helping by discussing estate planning solutions with clients and their wider families. Engaging early with good planning can help to reduce or mitigate IHT so its essential anyone who considers IHT to be an issue should be seeking expert advice now.”

Tax and financial planning expert at Quilter, Rachael Griffin, added: “IHT is fast becoming a profitable area for the government, largely due to the rapid rise in house prices seen in recent years causing more people to tip over the threshold.

“Making pensions subject to IHT would be counter-intuitive to encouraging people to save for their retirement, and with the lack of certainty on the direction of social care it is crucial that people continue to put their own financial plans in place.

“Given IHT thresholds have already been frozen, more and more people will already be dragged into paying what is often regarded as one of the nation’s most hated taxes, let alone if pensions were to be brought into the mix. IHT has traditionally been viewed as a tax on wealthier individuals, but the number of people caught in the IHT net has been rising steadily for some time now and this number will only continue to rise as we move further into the freeze.”

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