IHT receipts and investigations on the rise

In the first ten months of the 2023/24 financial year, HMRC collected £6.3bn in IHT receipts, £0.4bn more than the same period the previous fiscal year. This represents a 6.8% rise year-on-year and suggests this year’s annual figure will comfortably surpass last year’s record-breaking total of £7.1bn. 

With the nil-rate threshold frozen at £325,000 for over a decade, combined with rising property prices, more households continue to be drawn into the IHT net. 

Targeted investigations 

In addition, record amounts of underpaid tax has been recovered by HMRC through a specialist team targeting the estates of wealthy deceased individuals. Data obtained via a Freedom of Information request shows that 2,029 IHT investigations were opened between April and November last year, with £172m recovered during that period alone as a result of targeted investigations. 

Concerned? Seek advice 

Research1 has highlighted that IHT is the number one financial concern among wealthy individuals. The study determined that over a third of wealthy Britons are worried about IHT, with prominent increases in levels of concern recorded amongst the 25 to 34 and 55 to 65-year-old categories over the last year. 

The rules surrounding IHT are notoriously complex. People often require professional advice to find the most efficient solution for their circumstances. If you have any concerns or need advice, get in touch. 

1RBC, 2024 

It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.