The rising value of inheritance tax (IHT) receipts has highlighted how some families could potentially face “a major surprise” when handling a loved one’s estate, according to an expert.
HM Revenue & Customs (HMRC) recently revealed that its total tax receipts for April 2022 stood at £69.3 billion, around £10.8 billion higher than 12 months ago. In terms of IHT, receipts reached £0.5 billion, which was £10 million higher than the same period last year.
IHT bills rising
HMRC stated that higher IHT receipts in some recent periods may be linked to a higher volume of wealth transfers, rises in asset values and the decision to maintain the IHT tax-free thresholds at 2020/21 levels.
Dicky Davies, Director of Business Development at Tower Street Finance, said the figures offer an interesting insight into the current state of play.
He outlined: “These statistics put a fascinating spotlight on where things stand right now with IHT. The rise in property prices and other asset values may mean estates are worth more, but this may not spell good news for some families.
“For example, they may discover that the estate of a loved one is more valuable than they expected, with this leading to a major surprise when it comes to IHT.
“Such issues are not uncommon, and this is why we created our IHT loan, which is designed to help those facing an unexpected bill. The product can be used to pay HMRC, with the estate then repaying the funding.
“The idea behind it is simple – we want to ensure that people do not face stress or problems as a result of IHT issues.”
Find out more at about our Inheritance Tax Loan product or call us on 0343 504 7100.