Andrew Tully comments on record IHT receipts

HMRC today announced the latest Inheritance Tax (IHT) receipts, within their wider tax receipts document: HMRC tax receipts and National Insurance contributions for the UK (monthly bulletin) - GOV.UK (www.gov.uk)
 

  • Total HMRC tax receipts for the 2023/24 tax year are £827.7 billion, which is £39.1 billion higher than last year.
  • Receipts were higher from Income Tax, Capital Gains Tax and National Insurance Contributions (NICs), business taxes and VAT
  • Receipts were lower from stamp taxes and Tobacco.

Inheritance Tax

  • IHT receipts for 2023/24 are a new record £7.5 billion, which is £0.4 billion higher than last year.
  • This continues the strong upward trajectory over the last few years (see graph below).
  • The current £325,000 nil rate band has been at that level since 2009. The residential nil rate band was introduced on a phased basis between 2017 and 2020 and potentially gives an additional £175,000 nil rate band (making a total of £500,000) subject to certain rules.
  • Both are currently intended to be frozen until 2028.
  • Given all of this the need for expert financial planning remains crucial.
     

Andrew Tully, Technical Services Director at Nucleus, said: “These are record IHT receipts following on from previous record highs in each of the last two years. The Office of Budget Responsibility predicts the IHT take will be £9.7bn in 2028/29 which means the impact of this tax is set to continue growing strongly.

Advisers can help manage an estate by setting up trusts, making use of gift allowances, and using a pension to pass on wealth to family in a tax efficient way.”

Enquiries:

Linda Harper 
Head of Public Relations - Nucleus Financial Platforms group
E: newsroom@nucleusfinancial.com
T: +44 (0) 7876 145309

Notes to editors:

About Nucleus

The Nucleus Financial Platforms group offers investment platforms and products exclusively to financial advisers, that ultimately help make retirement more rewarding.
Renowned for its SIPP expertise, James Hay Partnership has been working with larger financial advisory groups for more than 40 years, providing the means to administer pensions, savings and investments in a cost and tax efficient way.
Our award-winning platform Nucleus was founded in 2006 by advisers committed to altering the balance of power in the industry by putting the customer centre stage.
Curtis Banks is one of the UK’s largest administrators of SIPP and SSAS solutions for customers and businesses. It is one of Europe’s largest commercial property landlords, a specialist area for self invested pensions. The business maintains a focus on providing high levels of technical support, robust service, modern technology and innovation.
Together we’re one of the UK’s leading, independent, adviser platform and product groups, with approximately £89 billion in assets under administration, helping nearly 5,500 advisers make retirement more rewarding for almost 235,000 customers.