HMRC has reported that it has received £2.9bn in receipts for inheritance tax (IHT) between April and August.

The figure is around £300m higher than the same period last year.

HMRC had received £2.4bn in IHT receipts from the start of the financial year up to the end of July, meaning around a further £500m in IHT receipts was taken over the course of August.

So far this year, a record high figure for receipts in June can be attributed to a small number of higher-value payments than usual, HMRC added.

Commenting, tax partner at Evelyn Partners, Julia Rosenbloom, said that the latest reported year-on-year rise for IHT receipts will be “welcomed” by the Treasury, given it is “under pressure” to pay for Liz Truss’s pledges to reverse the recent national insurance increase and the scheduled corporation taxes increases, as well as fund the energy plan announced earlier this month.  
 
“While the outlook for IHT is uncertain, more families are already being pushed into its scope given frozen allowances and rising house prices – even before any possible changes are made by the new Truss administration,” Rosenbloom said.

“The nil rate band and residence nil rate band, which have been frozen until at least April 2026, are pushing IHT receipts upwards, so people should give careful thought to their tax planning to help minimise the chances of being hit by a hefty IHT bill.   
 
“Families should regularly review their tax planning and take a close look at the allowances available to them to ensure they don’t end up paying more tax than they need to. By considering tax planning strategies such as making gifts to family members or investing tax-efficiently there are a number of legitimate ways families may be able to reduce or eliminate their IHT bills.”  

Group communications director at Just Group, Stephen Lowe, added: “Our recent analysis found that over-55s have seen their property wealth grow by £1bn a day between the start of the pandemic and June 2022, reaching a total value of around £4.4trn. It’s likely many homeowners are unaware of the tax sting in the tail of this property windfall.
 
“With the nil rate bands – the size of the estate that can be left without paying any IHT – set to remain frozen until 2026, it is increasingly likely that a higher proportion of estates will trip into the threshold over the coming years. It is important that people regularly assess the full value of their estate so they get a clear picture of whether inheritance tax will affect them and understand what steps they can take to mitigate it.
 
“For some people, options such as lifetime mortgages may be a good option to unlock a portion of the wealth tied up in bricks and mortar. Passing on this wealth through ‘living inheritances’ allows people to see the benefit for recipients particularly if it helps loved ones through the current cost of living crisis, and it can minimise the IHT payable on their estates.”

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