Another month, another rise in Inheritance Tax receipts for HMRC
INHERITANCE TAX RECEIPTS UP
HMRC data released this morning show Inheritance Tax (IHT) receipts reached £600 million in April 2023, which is £100 million higher compared to the previous tax year’s April figures.
Commenting on the rise, Jonathan Bramall, Business Development Manager at Fundamental Asset Management said:
“Due to years of increasing house prices, high inflation rates, and tax freezes, more families who do not consider themselves wealthy are now exceeding the threshold for IHT.”
A large factor in the increase in Tax receipts is down to more people being caught outside of the tax-free inheritance allowance known as the nil-rate band. Each individual can pass on up to £325,000 of their estate without being liable for any IHT. Amounts exceeding £325,000 may be subject to a maximum IHT rate of 40%. Despite inflation reducing the value of this relief by 32.8% since April 2009, and average house prices rising by nearly 85%, the nil-rate band has remained unchanged – meaning more estates are having to pay IHT to HMRC.
An established tactic for individuals concerned about IHT is using AIM listed companies which are eligible for Business Relief to reduce their potential liability. The easiest way to do this is using an AIM specialist firm that specialises in investing in AIM for IHT planning. For more information click here.
STAMP DUTY RECEIPTS DOWN
HMRC did see a fall in Stamp Duty receipts of £0.7bn compared to the same period in 2022. This is due to the property market being hit by a combination of factors including the cost-of-living crisis, the disastrous mini-Budget and Stamp Duty changes.
Fundamental Asset Management’s AIM Inheritance Tax portfolio service can help you leave more of your money to your family instead of HMRC. To find out more about the benefits of AIM, please speak to our Business Development Manager, Jonathan Bramall, via email [email protected] or phone 01923 713 894.