HM Revenue and Customs collected £0.7bn from inheritance tax in the first month of the new tax year, data has shown.
HMRC's latest monthly tax bulletin found IHT receipts were £85mn higher than this time last April.
Quilter tax and financial planning expert, Shaun Moore, said: “Following the revelation last month that last year there was a record breaking £7.5bn paid in inheritance tax the latest figures reveal that there has once again been an increase.”
He stated the £85mn increase came as a result of frozen thresholds and inheritance tax policy inertia persisting.
“As we enter into election season, it would be sensible for either party to reassess the UK’s IHT landscape and change what is no longer fit for purpose,” he added.
Additionally, HW Fisher tax partner, Stevie Heafford, stated: “April was certainly a strong start to the tax year for HMRC.”
She attributed this to the chancellor’s decision to freeze the nil rate band until 2028 as this has meant many people have found themselves “caught in the inheritance tax trap” for the first time.
“It is more important than ever for individuals to understand the rules around gifting to ensure they can leave as much behind for their loved ones as possible,” she added.
Additional receipts
The increase in IHT contributed to total HMRC receipts also increasing in April, rising by £4.2bn when compared to the same period the year before.
This meant that total HMRC receipts for the month reached £75.4bn.
Also contributing to this increase was a rise in the collection of income tax, capital gains tax, and national insurance contributions which totalled £44.4bn in April of this year.
This represented an increase of £3.5bn compared to the same period last year.
However, HMRC specified that the reduction of employee national insurance rates from 10 per cent to 8 per cent, announced at the Spring Budget and effective from April 6, is expected to affect receipts from May 2024 onwards.
tom.dunstan@ft.com
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