The amount of inheritance tax raised during tax year 2020-21 has increased by 4% to £5.4bn, up £190m year on year, although the amount of money offset for charitable donations has declined over the same period
This reverses the fall seen last year, and means receipts have been broadly flat across the four years since the tax year 2017 to 2018. Receipts are below the peak seen in the tax year 2018-19 by £33m. The decline in tax take is due to the phased introduction of the residence nil-rate band (RNRB) tax-free threshold from April 2017.
A small proportion of annual deaths are liable for inheritance tax, with 3.7% (22,100) of UK deaths (592,000) resulting in a charge.
The combined value of agricultural and business property relief (APR, BPR) was £3.49bn in the tax year 2018-19. This was a fall of £44m (1.2%) compared to the tax year 2017-18.
The value of exempted transfers to qualifying charities also fell, from £2.8bn in the tax year 2017-18 to £1.7bn in the tax year 2018-19.
