HMRC has focused its efforts on families who underpay their inheritance bill (IHT) in an attempt to cash in on booming property prices, according to data by insurer NFT Mutual.

A record amount was raised through IHT investigations in the year to March 2022, up 28% on the previous 12 months.

In addition, the sum reclaimed in 2021-22 represented 5% of the total £6.1bn in death duties paid last year.

Increasingly wealthy individuals are being targeted by HMRC, defined as those with an income over £200,000 or assets of over £2m.

Tax on assets above the tax-free threshold, which is £325,000 per person or twice that for married couples, £650,000, is applied at 40%.

In April 2017, individuals were able to claim an additional allowance of £100,000 for the first time to offset the sale of a family home on death, on top of their existing £325,000 IHT exemption. This now stands at £175,000, allowing a couple to pass on £1m of an estate tax-free.

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