The government raked in £1.8bn in receipts for inheritance tax (IHT) between April and June, new figures published by HMRC have indicated.

This total is around £300m higher than in the opening three months of the tax year in 2021.

Last month, HMRC reported that it had received £1.1bn in IHT receipts for April and May, meaning a further £700m was taken in June.

HMRC stated that the record high receipts in June could be attributed to a “small number of higher-value payments than usual”.

Reacting to the figures, Technical director at Canada Life, Andrew Tully, said that IHT is “no longer just affecting the very wealthy in society”, and “increasingly catching out families” who are unprepared or unaware of the tax rules.

“The frozen thresholds mean that HMRC has already doubled its tax take from IHT over the last 10 years,” Tully commented. “This surge will partly be driven by the ongoing increase in house prices, as residential property makes up the largest share of most estates. There has also been a higher volume of wealth transfers due to COVID – partly due to more deaths in the elderly population, but also as some people make outright gifts to help family during this difficult period.

“Both the nil rate band and residence nil rate band are frozen until at least April 2026 so we can expect to see IHT receipts continue to rise.

“The legacy from the pandemic may mean more people are open to discussing estate planning with family. Good planning can help to reduce or mitigate IHT so it’s essential to get expert financial advice for tax efficient ways to pass wealth onto loved ones.”

Group communications director at Just Group, Stephen Lowe, highlighted forecasts from the Office for Budget Responsibility (OBR) that indicate as many as 6.5% of estates could be liable for IHT by 2026 – almost double the 3.7% that the figures show for the latest financial year.

“The OBR also revised IHT forecasts up by an average of £400m a year compared to October 2021 estimates because of increased mortality as well as higher house prices,” said Lowe.

“Residential property is typically the most valuable component of IHT-paying estates and yesterday’s House Price Index revealed that the average UK property has risen by 13% in value over the past year so many people could be approaching or surpassing the threshold without realising it.

“It makes good sense for people to keep track of the likely size of their estate and the tax rules that will apply to it. There are options available to people, such as lifetime mortgages, that can unlock some of the wealth tied up in bricks and mortar.”

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