The Government’s inheritance tax (IHT) intake totalled £600m in April, a figure £100m up on last April’s figure, new data published by HMRC has indicated.

This follows the record-breaking 2022/23 which saw £7.1bn raised in IHT.

HMRC’s figures have shown that the past two years have seen increases of 14% and then 17% in IHT receipts, respectively, which are growing by nearly £1bn every 12 months.

The number of estates across the UK that have been pulled into the IHT net has grown in the last few years, largely as a result of rising house prices, and particularly in London and the South East of England.

Responding to the first IHT figures for the new tax year, group communications director at Just Group, Stephen Lowe, commented: “The increased tax hauls are likely being driven by a combination of frozen thresholds and rising property prices around the time of the pandemic.

“With the existing thresholds due to remain in place until 2027/28, The Treasury looks set to continue banking healthy inheritance tax receipts.

“The figures should act as a warning for people to remember to assess the value of their estates, including an up-to-date valuation their property.”

Having last November announced a further freeze to the IHT threshold of £325,000 until April 2028, the Government will likely push more estates over the IHT threshold in the coming years.

No changes to the current IHT rules were announced in Jeremy Hunt’s Budget in March, but forecasts by the Office of Budget Responsibility (OBR) indicated that between the 2022/23 and 2027/28 tax years, the Treasury will collect £45bn in IHT receipts.

Tax partner at Evelyn Partners, Laura Hayward, added: “The latest year-on-year increase in IHT receipts provides more good news for the Treasury. Given the inflationary growth of asset values coupled with frozen allowances, the rise and rise of IHT receipts seems to be unstoppable.

“The nil rate band remains frozen at £325,000 until at least April 2028 so, as things stand, even more families are expected to be caught by IHT in the months and years ahead.

“Today’s update from HMRC should be a wake-up call for families to give careful thought to their tax planning to ensure they don’t pay more tax than they need to. Families can minimise the chances of being hit by a hefty IHT bill by taking action now.”

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