Inheritance tax receipts for April 2024 to March 2025 hit £8.2bn, a £0.8bn rise from the same period last year.
Data from HMRC, released today (April 23), revealed IHT receipts continue to soar with higher receipts during this period being partially attributed to a small number of higher value payments.
Andrew Zanelli, head of technical engagement at Aberdeen Adviser, said IHT receipts were only going to keep rising somewhat due to the government’s plans to bring pensions into the scope of IHT.
“While we’re still waiting for details on exactly how this will be done, it’s already something that many people are understandably concerned about. For anyone worried, the key thing is not to be hasty and rush into any action.
“It is possible to manage IHT risk with good planning, and knee-jerk responses, such as pulling significant amounts of money from retirement savings now, might not turn out to be in their best interest when everything is considered.
“Careful and comprehensive planning, supported by expert advice, will be critical for those looking to manage their exposure in a way that still supports their overall financial goals,” he explained.
Paul Barham, partner at Forvis Mazars, believed “perceptions of IHT being a preserve of the wealthy are set to change”.
Other tax
Elsewhere income tax, CGT and NICs receipts for April 2024 to March 2025 were £486.9bn, £17.6bn higher than the same period last year.
While PAYE income tax and NICs receipts for April 2024 to March 2025 were £423bn, a £15bn rise on the same period last year.
Shaun Moore, tax and financial planning expert at Quilter, said: “Frozen income tax thresholds, which have now remained stagnant since 2021, have seen an increasing number of people paying income tax for the first time, as well as dragging many into higher rates each year.
“Without an explicit tax hike, and therefore without technically breaking its promise not to increase taxes on working people, the government has generated billions in extra income.
“What’s more, with employer national insurance payments rising from this month, this tax take will continue to climb.”
alina.khan@ft.com
