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.

Read more: 'Jumbo hike' as interest rate goes to 5% in 13th rise in a row as Bank tries to slow inflation

Read more: UK thunderstorm warning issued despite forecast for 'Spanish plume' bringing searing weather

“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.

More Latest News

See more More Latest News

It comes as a TikTok sleuth who joined the hunt for missing teen Jay Slater said he believes the 19-year-old remains trapped in a Tenerife ravine.

Jay Slater's family blast trolls over bogus leads following sightings on the ‘Eurostar’ and ‘watching the Euros’

Four men found dead in car following horror collision with tree

Four men found dead in car following horror collision with tree

The M25 motorway closures are to set to cause travel chaos

Motorway misery: M25, M4 and M1 closures set to disrupt drivers this week – find out if you’re affected

Giovanni Pernice is expecting to be cleared following a misconduct probe, it is understood.

Ex-Strictly pro Giovanni Pernice 'expects to be cleared' amid misconduct allegations

The Prince Albert memorial has been 'considered offensive'

Prince Albert Memorial branded 'offensive' as it reflects 'Victorian view of the world'

Lord Falconer has said 'the time has come' for assisted dying reform

'The time has come': Lord Falconer calls for 'significant' assisted dying reform ahead of his new bill being introduced

An independent review recommended teachers and nurses get 5.5% pay rises

'There's also a cost to no deal': Treasury minister hints at above-inflation pay rise for public sector workers

Yvette Cooper vows to crackdown on illegal immigration

Beauty salons and car washes to be targeted in illegal immigration blitz as Home Secretary redeploys Rwanda scheme staff

Sarah Justine Packwood, 54, and her husband, Brett Clibbery, 70.

Mystery as Brit woman and husband attempting to cross Atlantic found dead in lifeboat one month after going missing

Five days of big names: LBC announces guest host week

Five days of big names: LBC announces guest host week

Rachel Reeves

Rachel Reeves vows 'big bang' for pensions as government launches review in bid to boost investment and savings

Amanda Abbington has claimed Giovanni Pernice was 'cruel and abusive'.

Strictly's Amanda Abbington breaks silence over 'cruel' Giovanni Pernice - as first female pro under fire

Donald Trump spoke at a rally for the first time since he was shot in the ear

Donald Trump says he ‘took a bullet for democracy’ at first rally since assassination attempt

A burnt out car in the Leeds suburb of Harehills, after vehicles were set on fire and a police car was overturned as residents were warned to stay home following an outbreak of disorder on Thursday evening. Picture date: Friday July 19, 2024.

Man charged with arson after bus set on fire in Leeds riots over children allegedly removed from local family

Craig Revel Horwood has said the recent allegations have come as a 'shock' to him

Strictly Come Dancing judge Craig Revel Horwood breaks silence after 'shock' of dancing show's abuse allegations

A series of Israeli strikes have been launched against the Houthi-controlled port city of Hodeidah in Yemen

Israel launches series of air strikes on Houthi-controlled city in Yemen day after group claim deadly attack on Tel Aviv