IHT receipts see another year-on-year rise – comment on latest HMRC data

New data out today from HMRC shows that IHT receipts for April 2021 to October 2021 were £3.6 billion - £0.6 billion higher than the same period a year earlier.

Ami Jack, Head of National Tax at Smith & Williamson, part of wealth management and professional services group Tilney Smith & Williamson, commented: “Following the Chancellor’s extensive spending commitments announced in the recent Budget, the Treasury needs to do everything it can to boost its coffers to pay for the plans. The continuing year-on-year rises in IHT collections will therefore be welcomed by the Treasury.

“The Budget was light on personal tax announcements, with no major changes to IHT. Outside of the Budget, however, the Government announced a 1.25% increase in national insurance contributions and income tax on dividends from 6 April 2022, demonstrating it is not afraid of tax rises and there may be more changes to come to personal taxes in the short to medium term.

“With the outlook for personal taxes uncertain, people should continue to carefully consider their tax planning and make the most of current allowances before any further possible changes are introduced. By considering options such as making gifts and investing tax-efficiently, there are a number of areas of tax planning that may help reduce an IHT bill.”