Stealth inheritance tax rises lead to record £4.4bn take for Treasury
Record £4.4bn collected from inheritance tax in six months
- The UK government collected £4.4 billion in inheritance tax (IHT) between April and September this year, marking a 2.3 per cent increase.
- This revenue boost is primarily attributed to frozen IHT thresholds, which have remained unchanged since 2009, leading to more families being drawn into the tax net due to rising asset values.
- Any estate valued over £325,000 is subject to IHT, with an additional £175,000 exemption for passing a main home to direct descendants.
- Experts predict this will be another record-breaking year for IHT income for HMRC, a phenomenon known as fiscal drag.
- Speculation suggests the upcoming Budget might introduce further changes to IHT, potentially including stricter rules on gifting and the planned inclusion of pensions from 2027.