Friday, December 2, 2022
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IHT receipts hit new document excessive

Inheritance tax receipts for April 2021 to February 2022 hit a brand new document excessive of £5.5bn.

The earlier excessive was £5.36bn for the 2018/19 tax 12 months.

The receipts for April 2020 to February 2022 have been £0.7bn larger than the identical interval a 12 months earlier.

HMRC stated larger receipts are anticipated to be attributable to larger volumes of wealth transfers that befell in the course of the Coronavirus pandemic, but it surely doesn’t but have the complete administrative information.

Shaun Moore, Monetary Planning professional at Quilter, stated eyewatering home costs are resulting in extra individuals being caught by the IHT web.

He stated: “These ever-increasing figures show that the federal government are progressively growing tax revenues with out considerably growing the burden on taxpayers. Nevertheless, IHT was as soon as seen as a tax on wealthier people, however attributable to runaway home costs extra individuals are getting caught by the tax and many individuals who wouldn’t contemplate themselves rich will now face a hefty IHT invoice. That is nicely mirrored in the truth that London and the Southeast have probably the most quantity of estates paying IHT, which is because of the above common home costs within the area.”

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, stated: “It’s been a bumper 12 months for HMRC with inheritance tax and stamp responsibility surging to all-time highs this month whereas the rising variety of individuals returning to the workforce means revenue tax and nationwide insurance coverage receipts proceed to develop.

“It’s massively constructive to see individuals going again to work, however this information reveals the heavy toll the pandemic has laid on society with inheritance tax receipts hitting all-time highs – they might hit as a lot as £6bn by the tip of the tax 12 months. That is largely due to an elevated variety of wealth transfers all year long. Whereas we hope the variety of transfers will drop because the pandemic claims fewer lives, we are going to nonetheless see extra estates turn out to be liable over the approaching years because the freezing of inheritance tax thresholds continues to chew.”

This can be a growing story so please again later for extra commentary.

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