IHT receipt rises 'not enough to fill government's black hole'

The tax is seen as a likely reform target in October’s Autumn Budget

Jen Frost
clock • 3 min read

Inheritance tax (IHT) take has climbed again, but industry watchers have cautioned that this is not enough to fill a public finance “black hole” identified by Chancellor Rachel Reeves.

IHT receipts for August to April 2024 sat at £3.5bn, a £300,000 rise on the same period last year. This is according to figures released by HM Revenue and Customs (HMRC) this morning (20 September). Total tax receipts for the period were £342.2bn, an £8.9bn increase year-over-year. "Rising IHT receipts are a fact of life for the Treasury but even at the current rate of 9.4% on the year they aren't rising fast enough to help fill the ‘black hole' that the government says it has identified in the public finances," said Evelyn Partners tax partner Laura Hayward. DC pension pots and farmi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

'Christmas has come early for the government' – IHT receipts rise

'Christmas has come early for the government' – IHT receipts rise

Budget tax changes and rising take highlight advice value, experts say

Jen Frost
clock 20 December 2024 • 2 min read
No more IHT relief on pensions: How to maximise alternative tax-efficient vehicles

No more IHT relief on pensions: How to maximise alternative tax-efficient vehicles

In the light of the government’s latest Budget

Jordan Wheatley
clock 19 December 2024 • 5 min read
Changes to agricultural and business relief explained

Changes to agricultural and business relief explained

Government will publish a technical consultation in early 2025

Julia Peake
clock 11 December 2024 • 4 min read