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Focus On Mitigating Inheritance Tax Liability After Receipts Soar

Amanda Cheesley

24 July 2023

Latest figures from the UK’s tax authority show that inheritance tax receipts hit £2 billion ($2.6 billion) from April to June 2023, up £200 million from the same period a year earlier, continuing the upward trend.

These figures show how much the government’s inheritance tax take seems to be rising, due largely to years of house price increases, soaring inflation, and tax freezes which have pushed an increasing number of families that would not consider themselves to be wealthy above the threshold for inheritance tax. In 2019/20 inheritance tax bills averaged over £200,000 for those who paid them, and the total inheritance tax take has increased since then, totalling £7.866 billion last tax year, , added. 

IHT remains a major tax and estate planning concern for wealth advisors. One issue that has been flagged is how individuals with UK-based assets, and who have put those assets into foreign trusts, can still be hit and may have costly tax bills if they haven't taken hold of their affairs. See an example here.