IHT lifts 12% to

Img

Inheritance tax receipts lifted 12% to £4.6bn between April to October compared to a year ago, according to HMRC data, a day before the Autumn Statement.  

The levy is on track to hit record levels for the third year in a row, say property professionals.  

Any reductions to the tax are now expected in the Spring Budget, according to the latest speculation.  

This has dialled back from a few weeks ago when reports had suggested its 40% headline rate would be cut in half by Chancellor Jeremey Hunt in the Autumn Statement on Wednesday.  

Just Group communications director Stephen Lowe says: “As figures start to become available for the second half of the financial year, it is becoming increasingly clear that inheritance tax is on course to hit a record annual total for the third year in a row.  

“At the current rate of tax collection, inheritance tax will raise over £7.8bn for the Treasury, far surpassing the Office for Budget Responsibility’s estimate for this year of £7.2bn as well as last year’s all-time high of £7.1bn.   

“It’s a useful source of revenue for the government, and if rumours are to be believed, tomorrow’s Autumn Statement will see any potential cut to inheritance tax delayed until the spring.”  

Canada Life tax and estate planning specialist Julia Peake adds: “The latest inheritance tax receipts indicate that we’re on a trajectory for another record-breaking year, delivering the Treasury £158m every week in revenue so far this tax year.  

“While we wait to see what rabbit, if any, the Chancellor pulls out of his red box tomorrow, one question remains quite clear.   

“If tax receipts are higher than expected this year, and according to the Office for Budget Responsibility only set to increase if things remain as is, can the Treasury afford to lose the approximate £7bn in revenue inheritance tax brings in?”