Danny McCance 1 Aug 2018 11:54am

Inheritance tax receipts hit record high

Receipts from the controversial tax totalled £5.2bn in 2017/18 and is now at its highest-ever level

The total for inheritance tax (IHT) receipts increased by 8% (£388m) since 2016/2017, according to the latest statistics released by the government.

This rise was still less than the 22% increase registered between 2014/15 and 2015/16, which reflected an estimated 43,900 winter deaths in 2014/15.

Additionally, between 2009/10 and 2015/16, the net value of estates rose by £17bn to £79bn, of which 54% was an increase in residential property.

IHT receipts have been increasing since 2010/11, while the total number of IHT liable estates has increased every year from 2009/10 ¬– in 2015/16 there were 24,500 liable estates.

Despite the spike in the value of property in recent years, the nil-rate band has remained at £325,000, causing more families to be liable for the IHT.

According to the Office for Budget Responsibility (OBR), IHT receipts look to increase as a share of GDP by 2022/23.

“The effect of continued growth in asset prices is partly offset by the rising path for the main residence nil rate band from 2017/18 onwards,” an OBR spokesperson said.

In January, chancellor Philip Hammond tasked the Office of Tax Simplification (OTS) to review IHT with the aim of simplifying the complex and controversial regime.

The OTS has been contacted for comment.