Receipts for inheritance tax (IHT) have risen by £0.7bn year-on-year, according to new data published by HMRC.

Figures showed that IHT receipts between April and August this year totalled £2.7bn, climbing from £2bn over the same period in 2020.

HMRC stated that lower totals of receipts were recorded in April and May 2021 due to a “temporary issue” where HMRC was unable to accept cheques for payment of IHT due to COVID-19. This was resolved which then led to a peak in June 2020 receipts.

The data also showed higher receipts recorded in October 2020, November 2020, and March to August 2021, which HMRC suggested is due to higher volumes of wealth transfers that took place during the pandemic. However, HMRC said it could not verify this until full administrative data becomes available.

Commenting on the figures, Kingswood wealth planner, Paul Archer, said: “The latest HMRC IHT data shows that receipts for April 2021 to August 2021 are £0.7bn higher than in the same period last year, reaching £2.7bn.

“The main reasons for the rise in IHT receipts are threefold. First, the nil rate band of £325,000 – the asset amount an individual has free before they are charged IHT at 40% – has not risen since 2009. Second, estate values have risen in the last year mainly due to strong investment returns and property value rises.

“Third, the majority of wealth in the UK is owned by over-60s which is the age bracket where sadly COVID has resulted in more deaths than usual. Indeed for these reasons, we expect to see IHT receipts rising steadily this year and into 2022.”

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