New figures from HM Revenue and Customs have revealed that the amount of money raised from inheritance tax fell for the first time in a decade last year.
The amount of cash raked in from the death tax slumped £223million, or 4 per cent, in the 2019-20 tax year, but the charges still bolstered the Treasury’s coffers to the tune of £5.2billion.
With the Government furloughing scheme alone costing more than £30billion to date, Chancellor Rishi Sunak could have an IHT hike in his sights in the Budget later in the year.
The introduction of the residence nil-rate band in the 2017-18 tax year was the main reason IHT receipts and number of people paying the tax fell last year, HMRC said, with the changes taking time to fully filter through.
What’s he planning? Chancellor Rishi Sunak could have inheritance tax in his sights this year
Inheritance tax receipts through time
Source: NFU Mutual
People managed to shelter £3.1billion from the Revenue as a result of the introduction of the main residence nil-rate band in 2017-18, HMRC said today.
The additional allowance enables individuals to pass on up to £1million to their loved ones tax free.