Inheritance tax receipts in June 2023 reached an all time high for monthly totals, standing at £795mn, data from HMRC has revealed.
The data also revealed that IHT receipts for April to June 2023 totaled £2bn and that this represented a £0.2bn increase compared to the data at the same time last year.
This large volume in June was attributed to possible effects from recent rises in interest rates that HMRC is obliged to charge on overdue tax bills following the recent increases in the Bank of England base rate.
IHT is the tax gift that keeps on giving, with receipts already firmly on track to break new records Canada Life tax and estate planning specialist, Julia PeakeHigher receipts in June could also be attributed to a small number of higher-value payments than usual, according to HMRC.
HMRC also stated that these recent interest rate rises may have encouraged the personal representatives of some estates to pay any tax due sooner than they otherwise would have done.
However, HMRC that it would not be able to confirm this until full administrative information becomes available.
Just Group group communications director, Stephen Lowe, said: "The IHT juggernaut is picking up pace setting monthly and quarterly highs for the Treasury."
Lowe also provided insight into what this meant for the Treasury saying that, in the opening quarter of this financial year, inheritance tax generated around £22mn everyday for the "government's coffers".
Canada Life tax and estate planning specialist, Julia Peake, added: “IHT is the tax gift that keeps on giving, with receipts already firmly on track to break new records."
Evelyn Partners tax partner, Laura Hayward, commented: "While reports circulate around Westminster that the Conservatives are considering scrapping IHT, the stark current reality is that more families are being dragged into paying the tax as each month goes by.
"Inflationary growth of asset values coupled with frozen allowances are helping ensure that, as things stand, IHT receipts continue to be a lucrative earner for the Treasury."
A government spokesperson commented: “The vast majority of estates do not pay inheritance tax, however, the tax raises more than £7 billion a year to help fund public services millions of us rely on daily.
“Estates of surviving spouses and civil partners can pass on up to £1 million without an inheritance tax liability - significantly more than the average UK home of £286,000.”
The Office for Budget Responsibility's latest forecast have suggested that IHT will raise £7.2bn this financial year and as much as £8.4bn by 2027/28.
tom.dunstan@ft.com
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