Treasury coffers swell from IHT bills - even before imminent reforms set in

Newsletter issue – January 2025

Reforms to Inheritance Tax were arguably among the most contentious measures that Rachel Reeves announced during her Autumn Budget.

We've seen farmers staging significant protests in London regarding changes to how agricultural properties are taxed when it comes to IHT.

But it seems that IHT receipts are rising swiftly even before any of the proposed changes can take effect.

Compared to the same half-yearly period last year, the Treasury took in £0.6bn extra in April to November 2024. That's according to new figures released by HMRC.

With these latest numbers, it appears that IHT continues to be on course for a record year of receipts. Analysts have noted that in total this year, before December's figures are announced, IHT receipts are already more than half a billion pounds higher than 2023. Commentators are predicting that with the changes to come as well, that the amount of IHT reaching Treasury coffers will keep on increasing in the next few years.

Another noteworthy figure that has been recorded in the media regarding the latest stats is that gross tax and National Insurance receipts for April to November 2024 rose by £15bn compared to a year ago. This figure included the IHT receipts.