Years of frozen allowances, paired with house price growth and soaring inflation, is dragging more people into inheritance tax, but there are ways to reduce the tax liability
In line with previous months, the latest figures on tax receipts for January show that inheritance tax (IHT) continued to rise with total receipts of £5.9bn so far this year, up £600m in December and on track to exceed the 2021-22 tax year by £900m. The failure to change thresholds for years is drawing more and more estates into the death taxes.
While the average bill was £216,000 in 2019/20, research conducted by Wealth Club suggests the average inheritance tax bill could reach £270,831 by 2025-26 and £288,611 by 2027-28 if current inflation expectations are met.
Alex Davies, CEO and founder of Wealth Club said: ‘The revenue generated from inheritance tax plays an important part in the government’s spending programme. But this is no longer something just the very wealthy need to worry about.
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