Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Treasury rakes in record inheritance tax receipts

Open-access content Tuesday 25th October 2022
sr

Inheritance tax brought £557m into the Treasury in September and reached record receipts this year, according to latest statistics from HM Revenue and Customs.

The data reveals that the Treasury collected £3.5bn through inheritance tax during the first half of 2022/23. This far surpasses the previous record of £3.1bn, recorded in the first half 2021/22, and the £2.9bn collected during the second half of 2021/22. Inheritance tax surpassed £6bn in 2021/22 for the first time ever, and the current tax year is now set to post consecutive all-time high tax-takes.

Evelyn Partners tax partner Julia Rosenbloom said the increase would be "music to the ears of a Treasury that has a difficult task of attempting to balance the books" following September’s calamitous mini-budget. "Given the current state of the UK economy and need to boost the government's coffers, new chancellor Jeremy Hunt will want to do all he can to preserve cash cows, such as inheritance tax receipts, until stability is restored to the nation's finances," she said.

"When outgoing prime minister Liz Truss promised tax cuts and a review of the tax system during her party leadership campaign in the summer, some had hoped that inheritance tax would be reduced or even abolished entirely.

"Given the turbulent events of the last few weeks and the fact we will soon have another new prime minister, both these scenarios seem unlikely to happen anytime soon."

Frozen thresholds and soaring property prices, which added £1bn of housing wealth every day to the estates of homeowners aged over-55 since the start of the COVID-19 pandemic, have combined to tip more estates into paying inheritance tax, says retirement specialist Just Group communications director Stephen Lowe. “The nil rate bands – the size of the estate that can be left without paying any inheritance tax – are due to remain frozen until 2026 and with the government scrabbling to fill a fiscal hole, the likelihood of any increase in inheritance tax thresholds before then seems vanishingly small,” he added.

“It is another reminder of the importance that people regularly assess the full value of their estate so they get a clear picture of whether inheritance tax will affect them and understand what steps they can take to mitigate it.”

Image credit | iStock
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ