IHT receipts show fresh year-on-year rise

New data published today by HMRC shows that IHT receipts for April 2022 to February 2023 were £6.4 billion, which is £0.9 billion higher than the same period a year earlier.  Laura Hayward, tax partner at Evelyn Partners, the leading integrated wealth management and professional services group, comments. 

Laura Hayward
Published: 21 Mar 2023 Updated: 21 Mar 2023

IHT receipts show fresh year-on-year rise

New data published today by HMRC shows that IHT receipts for April 2022 to February 2023 were £6.4 billion, which is £0.9 billion higher than the same period a year earlier. Laura Hayward, tax partner at Evelyn Partners, the leading integrated wealth management and professional services group, comments.

“This latest hike in IHT receipts provides a fresh reminder that families should give careful thought as to how best to manage their tax planning to ensure they don’t pay more tax than they need to.

“There were no significant changes to the IHT charging regime in last week’s Budget, but the overall silence in this area shouldn’t be taken that the IHT pain on families is being eased. In fact, new forecasts published by the Office of Budget Responsibility on the same day as the Chancellor’s statement suggest IHT receipts will grow by almost £3bn higher than previously estimated over the next six years. It’s now predicted that between 2022/23 and 2027/28 the Treasury will collect £45bn in IHT receipts, a rise from the £42.1bn estimate released in November.

“As today’s data reveals, IHT receipts are becoming an increasingly important way for the government to boost their coffers. The fact that the nil rate band – unchanged since it was increased to £325,000 from April 2009 – remains frozen until at least April 2028 represents a gift that keeps on giving for the Chancellor. The almost twenty-year freeze in the nil rate band, coupled with inflationary growth of asset values, will see many families with moderate levels of wealth being drawn into the IHT net.

“Families that find they are being dragged above the IHT threshold may wish to consider taking relatively easy steps to manage their exposure to IHT. Gifts you make to other individuals are generally not subject to IHT unless you die within seven years. There is also an annual gift allowance of up to £3,000 per tax year, and this will not be subject to IHT even if you do die within seven years. This £3,000 annual allowance can only be brought forward for one tax year, so if you have assets to spare you may want to consider using up this and last year’s allowance before 5 April. Families should also ensure they invest in the most tax-efficient manner possible.

“The scrapping of the lifetime allowance for pensions in last week’s Budget will greatly increase the IHT breaks available for people with wealth to pass down to the next generation, as pensions are generally exempt from IHT. Therefore pensions could now be considered a vehicle for tax efficient death planning, without any intention of ever drawing the money out. But people should be aware that pension rules could easily be changed again in the future, only to find this tax advantage withdrawn at the point that it really matters.”

About Evelyn Partners

Evelyn Partners is the UK’s leading integrated wealth management and professional services group, created following the merger of Tilney and Smith & Williamson in 2020. With £59.1 billion of assets under management (as at 31 December 2023), we are one of the largest UK wealth managers ranked by client assets and the seventh largest accountancy firm by ranked by Group fee income (source: Accountancy Age 50+50 rankings, 2023).

We have a network of offices in 30 towns and cities across the UK, the Republic of Ireland and the Channel Islands. Through our operating companies, we offer an extensive range of financial and professional services to individuals, family trusts, professional intermediaries, charities, and businesses.

Our purpose is to ‘place the power of good advice into more hands’, and we are uniquely well-placed to support clients with both their personal financial affairs and their business interests. Our personal wealth management services include financial planning, investment management, personal tax advice and, through Bestinvest, we have a multi award-winning online investment service for self-directed investors. For businesses, our wide range of services includes assurance and accounting, business tax advice, employee benefits, forensics

For further information please visit: www.evelyn.com


By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.

Issued by the Evelyn Partners group of companies (the “Group”) which comprises Evelyn Partners Limited and any subsidiary of Evelyn Partners Limited from time to time. Further details about the Group are available at: https://www.evelyn.com/legal-compliance-regulatory/registered-details