IHT receipts and investigations on the rise

In the first ten months of the 2023/24 financial year, HMRC collected £6.3bn in IHT receipts, £0.4bn more than the same period the previous fiscal year. This represents a 6.8% rise year-on-year and suggests this year’s annual figure will comfortably surpass last year’s record-breaking total of £7.1bn.

With the nil-rate threshold frozen at £325,000 for over a decade, combined with rising property prices, more households continue to be drawn into the IHT net.

Targeted investigations

In addition, record amounts of underpaid tax has been recovered by HMRC through a specialist team targeting the estates of wealthy deceased individuals. Data obtained via a Freedom of Information request shows that 2,029 IHT investigations were opened between April and November last year, with £172m recovered during that period alone as a result of targeted investigations.

Concerned? Seek advice

Research* has highlighted that Inheritance Tax (IHT) as the number one financial concern among wealthy individuals. The study determined that over a third of wealthy Britons are worried about IHT, with prominent increases in levels of concern recorded amongst the 25 to 34 and 55 to 65-year-old categories over the last year.

The rules surrounding IHT are notoriously complex. People often require professional advice to find the most efficient solution for their circumstances. If you have any concerns or need advice, get in touch.

*RBC research reveals top financial concerns for wealthy Brits in 2024

The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.

Tax treatment varies according to individual circumstances and is subject to change.

Inheritance tax planning, trusts, tax planning, will writing and estate planning are not regulated by the Financial Conduct Authority.

Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 26/04/2024

What is the impact of UK, France, and US Elections on your investments?

We are thrilled to present the latest episode of Citrus Insights, featuring an exclusive interview with the brilliant Lindsay James, Investment...

Citrus Bites Election Special: What Does the Election Mean for Your Money?

After six weeks of campaigning we finally know the result of the election. So, how will a Labour win impact our finances. In our latest Citrus Bites...

Don’t buy a house without watching this video!

Thinking about buying a home? The housing market can be a complex beast, and navigating it as a buyer, especially for the first time, can feel...