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The variety of taxpayers’ estates with Inheritance Tax on loss of life rose to an estimated 41,000 in 2022/23 – up 24% enhance on the earlier 12 months (33,000).
Hargreaves Lansdown, which analysed the figures from HMRC, stated that IHT was “now not a rich individual’s tax.”
Within the 2006-07 tax 12 months there have been an estimated 34,000 taxpayers incurring a legal responsibility. The introduction of transferable nil price bands and the residential nil price band initially lower the variety of liabilities, however they’ve since continued to develop strongly.
Latest HMRC information reveals that the quantity of IHT collected and the variety of taxpayers paying IHT are each rising.
Earlier this week it was revealed that the federal government’s inheritance tax (IHT) haul for the 2022/2023 tax 12 months reached £7.1bn – £1bn increased than the report seen within the earlier 12 months. Estimates on the Spring Price range counsel that over the following 5 years IHT will usher in £38bn.
Helen Morrissey, head of retirement evaluation at HL, stated: “Inheritance tax (IHT) is now not a rich individual’s tax – the massive surge in HMRC figures reveals it must be firmly on the radar of center Britain.
“The variety of individuals incurring IHT liabilities was already rising steeply within the early years of this century – helped largely by home value will increase.
“The introduction of transferable nil price bands – the place spouses may switch unused nil price bands between themselves – in addition to the residential nil price band did play a component in reducing the variety of individuals falling foul of IHT for just a few years earlier than rebounding strongly.”
The present IHT threshold of £325,000 has been frozen till 2028. This may increasingly pull extra individuals into the IHT web, HL predicts.
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