Inheritance tax up nearly £1 Billion in a year
New figures show that the hated Inheritance Tax (IHT) show that it has netted the government almost one billion pounds extra in just one year. It shot up from £749M last July to £844M this year. That is more or less double the £432M collected in July 2020. IHT is a tax on the estate of someone who has died, including all property, possessions and money. The standard Inheritance Tax rate is a whopping 40%. It’s only charged on the part of your estate that’s above the tax-free threshold which is currently £325,000. It is unpopular as it is effectively a double tax by the government and many people are subject to it when they inherit a property owned by a parent. Further reforms for 2026 are set to increase this further.
Other tax receipts are also through the roof: self assessment which includes most landlords is up to £15.48Bn in July from £12.76Bn and income tax and NIC were up £13bn to £160.6bn, partly due to frozen thresholds and higher emplyer contributions.
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