info@sccci.co.uk   01270 504 700   Help
Sign Up SCCCI Portal helps you connect with your local business community.

Inheritance Tax (IHT) receipts set to double by 2030

Taxpayers in the UK are set to pay a total of £10 billion a year in inheritance tax by 2030.  The most recent data from the Office of National Statistics shows that the Government collected £5.2bn in inheritance tax receipts in 2017/18.  This was an increase of around £1.38bn compared to the same time ten years earlier.


Based on current revenue trends, HMRC predict a much faster pace of change in the next decade.


It says this is a result of the nil-rate band having been frozen at £325,000 since 2009, which may mean more people are liable for inheritance tax as asset values increase - though updates are now filtering through.


The research also revealed that 18% of estates worth up to £1 million do not have an estate plan, meaning they may be paying more inheritance tax than necessary.


Paul Edwards at Cheshire accountants, Afford Bond said: "We still have a great reluctance to discuss death in this country, but there's alot which can be done to legitimately mitigate your inheritance tax bill.  Property price increases have placed many additional people into the higher bracker and people don't bring up estate planning early enough in their lifetime.  As a consequence the Government is undoubtedly receiving tax that with proper planning wouldn't need to be paid."