IHT increasingly feels like a raid on hard-working families
26th April 2022 10:15
interactive investor comments on the latest HMRC tax receipts.
- Inheritance Tax (IHT) receipts for April 2021 to March 2022 are £6.1 billion, which is £0.7 billion higher than in the same period a year earlier.
- Higher receipts in October 2020, November 2020, and March to August 2021 are expected to be due to higher volumes of wealth transfers that took place during the Covid-19 pandemic
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “IHT is a money spinner for the Treasury, with £6.1 billion collected between April 2021 to March 2022 - £700 million higher than in the same period a year earlier. IHT is no longer a tax on the wealthy as runaway house prices have dragged an increasing number of estates into the IHT net.
“IHT increasingly feels like a raid on hard-working families who have already been taxed at the point of earnings. The freezing of the nil rate and residence nil rate bands until at least April 2026 means the government’s IHT takings are likely to keep on rising.
“The increase in IHT takings feels unsavoury in the context of the pandemic, but the revenue will prove useful to the government to address its colossal spend in coronavirus economic support measures and support its spending programme.”
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