The latest figures from HMRC show total receipts are up by 6% (£11.2bn) on the same time last year and Inheritance tax receipts have surged by more than 20% in the first four months of the tax year signalling a more aggressive approach by HMRC, says Sean McCann, Chartered Financial Planner at NFU Mutual.
The latest figures show that almost £2bn was taken from people’s estates between April and July, suggesting a greater need for efficient tax planning and Financial Planning advice.
Mr McCann said: “It’s clear that the taxman is cracking down hard on inheritance tax by looking more closely at people’s estates and challenging claims for reliefs.
“When inheritance tax receipts rise, it’s usually because of a buoyant housing market. Now, with property prices stagnating, it’s difficult to see what could have caused such a sharp increase in receipts other than a more aggressive approach to inheritance tax.
“The extra scrutiny from tax officials means those who haven’t taken professional advice or planned early could be caught out. This could have a catastrophic effect on family wealth. IHT is one of the more complex taxes and there are plenty of traps to fall foul of – as many families appear be finding out.”
Since the government’s flagship inheritance tax policy - the new Residents Nil Rate Band – was introduced in April, inheritance tax receipts have leapt by more than £330 million when compared to the same time last year.