Families pay out £1.2bn in inheritance tax just eight weeks into the tax year

22 June 2023, 13:19

Thousands of families want the Chancellor to scrap inheritance tax
Thousands of families want the Chancellor to scrap inheritance tax. Picture: Alamy

By Asher McShane

Families grieving the loss of their loved ones have paid £1.2bn in death duties just eight weeks into the tax year, according to figures from HMRC.

The figure represents a £100m rise in revenue compared to the same period last year.

It means receipts for the financial year are set to hit around £7.7bn - a record high.

In March, the Office for Budget Responsibility said £38billion would be raised from IHT over the next five years.

Last financial year the Treasury raised £7.1bn through inheritance tax.

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“Inheritance tax looks set to be the gift that keeps on giving for the chancellor,” said Stephen Lowe at retirement specialist Just Group.

hancellor Jeremy Hunt confirmed the threshold for inheritance tax (IHT) will be frozen for a further two years in his Autumn Statement back in November.

The £325,000 threshold for individuals was set in 2009 and is frozen until 2028.

Inheritance tax is charged at 40% of a person’s estate above the tax-free allowance. A reduced rate of 36% is charged if the deceased leaves at least 10% of their assets to charity.