Figures released by HM Revenue and Customs (HMRC) show that inheritance tax receipts hit £5.7 billion in the eight months from April to November 2024. This amount is £600 million higher than the same period last year, reflecting an ongoing upward trend over the past two decades.
Nicholas Hyett, Investment Manager at Wealth Club, commented on the situation saying, 'Inheritance tax continues to be the gift that keeps on giving, at least as far as the government is concerned.' He highlights that rising property prices and upcoming tax changes will further burden families with this tax.
Hyett also warned, 'Farmers are already in uproar about the new Tractor tax, and removing IHT relief on family businesses could mean the final nail in the coffin for businesses that would otherwise have been passed on.' This indicates potential long-term impacts of tax reforms on family businesses.
In addressing potential long-term effects, Hyett stated, 'All governments need to balance short and long-term priorities. Short term financial gain may add pounds in the pocket now but could lead to long-term pain if people are put off saving to support themselves in retirement.'
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