Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Inheritance Tax Receipts raise £600 million in a month

by May 23, 2023
May 23, 2023
Inheritance Tax Receipts raise £600 million in a month

Inheritance tax receipts hit £600 million in April 2023 according to data released by HMRC this morning. This is £100 million higher than in April of the previous tax year.

Years of house price increases, soaring inflation, and tax freezes have pushed an increasing number of families that would not consider themselves to be wealthy above the threshold for inheritance tax.

There is a tax-free inheritance allowance called the nil-rate band that applies to everyone. Each person can pass on up to £325,000 of their estate without them having to pay any IHT. Anything above £325,000 could be subject to up to 40% inheritance tax. The nil-rate band has stayed at the same level since April 2009, even though inflation has cut the value of the relief by 32.8% over that time and the average house price has increased nearly 85%.

Some homeowners can also benefit from a ‘residence nil-rate band’ of up to £175,000 on top of the nil-rate band. This, however, only applies when you pass on your main residence to a direct descendant. The ‘residence nil-rate band’ has been frozen at £175,000 since April 2020.

Alex Davies, CEO and Founder of Wealth Club said: “The 2023/24 tax year is looking likely to be yet another record-breaking year for inheritance tax. It really is a cash cow for HMRC.

There are rumours inheritance tax cut could be cut in the run up to the next General election, with the government potentially increasing the threshold at which an estate becomes liable for inheritance tax. Alternatively, the government might consider a cut in the headline rate of tax. Either would be very welcome by the large numbers of affluent, but far from uber rich, households that are being hit by this most hated of taxes.

But in some circles, inheritance tax is already called the voluntary tax because so much can be avoided or mitigated through government backed investment schemes and careful tax planning. Writing a will is a good start. If you don’t your assets will be distributed according to intestacy rules and could be subject to IHT which could otherwise be avoided.

Read more:
Inheritance Tax Receipts raise £600 million in a month

0
FacebookTwitterGoogle +Pinterest
previous post
UK borrowing rises by more than expected on higher debt bill
next post
Founders who create safe environment for employees more likely to see start-up scale

You may also like

10 UX UI Design Stats and Trends that...

April 2, 2024

Women in their fifties face £7,000 pay gap

December 5, 2022

Six Scottish startups showcased at Virgin Hotels Edinburgh

August 16, 2022

Majority of UK SMEs are seeking ways to...

April 5, 2023

House prices fall nearly 2% over year

December 29, 2023

Ed Miliband launches state-backed offshore wind initiative

July 25, 2024

Tony’s Chocolonely Faces Legal Battle with Milka Over...

February 23, 2024

HSBC buys Silicon Valley Bank’s UK business for...

March 13, 2023

Thousands cancel Netflix or Prime Video as UK...

August 5, 2022

Greene King boss calls for business rates relief...

May 1, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Three Stocks in Focus: One Old Favorite, One Mag Name, and a Dow Comeback Story

      July 18, 2025
    • Don’t Hate the Player, Hate the Income Tax for Wrecking Health Care

      July 18, 2025
    • State Department says 59,000 tons of food assistance are in motion after reports of incinerated aid

      July 18, 2025
    • Pentagon to probe Microsoft’s use of Chinese engineers on sensitive defense systems, Hegseth says

      July 18, 2025
    • GOP senator reveals the ‘dirty’ secret to Trump’s Make America Healthy Again movement

      July 18, 2025
    • Russia says NATO threatens WWIII in latest deterrence plan that could take down Kaliningrad ‘faster than ever’

      July 18, 2025

    Categories

    • Business (8,524)
    • Investing (2,134)
    • Politics (16,112)
    • Stocks (3,218)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved