Average IHT take

Average IHT bill to hit £239k

The Treasury has seen a rise in inheritance tax receipts, with the total reaching £5.7bn in the nine months from April to December 2023. This is £400m more than in the same period a year earlier. The freeze on thresholds, combined with increasing house prices, has resulted in more families being affected. Wealth Club calculations suggest that the average bill for inheritance tax will increase to £239,000 this tax year, with over 30,000 families having to pay part of their inheritance to the taxman. On calls to reform or axe the levy, Nicholas Hyett, an investment manager at Wealth Club, said: "The Government's income from death duties is going up. That makes changes to IHT policy a careful balancing act." He added: "Cutting rates might win votes, since many see IHT as an unjust grab for money that's already been taxed once. But the revenue earned is playing an important part in the government's spending programme, and a shortfall would need to be made up somewhere else."