Bumper IHT receipts set to be new record high

Newsletter issue â€“ April 2024

Weâ€˜ve seen plenty of speculation before the last two Budgets that Inheritance Tax would see major reforms. Yet nothing materialised. And the latest figures released by the Treasury show perhaps why there might be some reluctance to change the rules, with the amount of tax received hitting a record high.

The latest stats have shown that the Treasury looks set to collect Â£7.54bn in the 2023/24 tax year. Thatâ€˜s higher than the previous record of Â£7.1bn, which was recorded in the 2022/23 tax year.

The Treasury has brought in Â£6.8bn in IHT receipts from April 2023 to February 2024 - Â£400m more than the same period last year.

The latest batch of statistics released by the Government showed a number of other forms of taxation also reeled in higher intake than previously.

VAT collected was significantly higher in the first 11 months of the 23/24 tax year. The figure reached Â£160bn - Â£9bn more than the previous year.

Officials reported that Income Tax, CGT,Â NICsÂ receipts for April 2023 to February 2024 were Â£430.3 billion. That was Â£23.2 billion higher than the same period last year.

PAYEÂ Income Tax andÂ NIC1Â receipts for April 2023 to February 2024 were Â£369.1 billion, which is Â£23.4 billion higher than the same period last year.

However, there was a slightly lower figure for the amount of Income Tax Self-Assessment. The figures for receipts for April 2023 to February 2024 showed that number reached Â£42.1 billion, a fall of Â£0.1 billion compared to the same period in the previous year.