Income tax and National Insurance tax receipts rose by £28.4bn to £220.7bn in the first seven months of the tax year, but the most marked increase was in inheritance tax take, which soared by 14% over the quarter alone.

So far this year, inheritance tax has brought in a record £4.1bn, which was £500m higher than the same period last year. If current growth continues, the full year inheritance tax take will be up significantly from £5.32bn for the whole of the 2021-22 tax year. On current patterns, it is plausible that inheritance tax could generate close to £7bn. Coupled with the freezing of inheritance tax thresholds until 2028, more people will be drawn into the tax over the next six years, creating a windfall for the Exchequer.

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