Inheritance tax receipts for the period April to November 2023 were £0.4bn higher when compared with the same period last year, HM Revenue and Customs has revealed.
In its monthly bulletin for tax receipts, HMRC reported that IHT receipts for the period were £5.2bn, an increase on the £4.8bn recorded in 2022.
Canada Life tax and estate planning specialist, Julia Peake, commented: “While speculation around changes to inheritance tax was rife in advance of the Autumn Statement, it yielded very little.
“With the latest tax data showing that IHT has delivered weekly receipts of £158mn, perhaps a status quo should come as no surprise given how much this tax has grown over the past few years.”
Peake added that IHT is on course to deliver £9bn for the Treasury by 2027/28 and that all signs are pointing to 2023 being another record breaking tax year this year.
Shaun Moore, tax and financial planning expert at Quilter, also said IHT receipts are expected to beat the previous £7.1bn record before the end of the tax year.
He said: "It had been widely rumoured that the government was looking to make changes to its IHT rules, but at least for now more families will be topping up government coffers as they are caught by the IHT net.
“IHT is a highly emotive tax that can split voters, so we can expect it to continue being a battleground policy for both the Conservatives and Labour as we near the general election.
"Though Jeremy Hunt opted not to make changes during his latest statement, we are expecting a budget to take place in March during which it could resurface if the Tories view it as a vote winner. Either way, some form of simplification of the tax is overdue."
Moore added: “Financial planners can help people manage their tax affairs to optimise their money. The rules and restrictions surrounding aspects of IHT such as the residence nil rate band can be difficult to navigate, and with an increasing number of people facing unexpected IHT bills, seeking professional financial advice can be highly beneficial in terms of ensuring you plan effectively to mitigate unnecessary costs.”
Total receipts
This increase in IHT receipts contributed to total HMRC receipts for the period from April to November increasing by £24bn from 2022 to 2023 as total receipts reached £515.9bn.
The increased total receipts was attributed by HMRC to income tax, national insurance contributions, VAT, and business taxes, all which saw increases in the latest bulletin.
However, it also noted that cash receipts were lower mainly from stamp taxes and tobacco.
HMRC detailed that income tax, capital gains tax, and NICs receipts for April 2023 to November 2023 were £280.3bn, an increase of £12.1bn than the same period last year.
It added that PAYE income tax and NICs receipts for the period were £263.5bn, which is an increase of £12.1bn compared to the same period last year.
