HMRC has collected £2.9bn in inheritance tax receipts between April and August 2022, a £300m increase on the same period a year ago. The rise in receipts was attributed to inflating house prices and rises prices of other assets.
With house prices continue to grow and inflation threatening to push up prices in general, it is likely many more people will pay greater amounts in inheritance tax in the future.
However, inheritance tax is a tax that can be reduced by effective management of your estate and utilisation of readily available schemes that allow individuals to cut their IHT bills.
Such schemes include the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) which are designed to help spur investment into early stage companies by providing generous tax benefits such as income tax relief and inheritance tax exemption.
It is not only private companies that provide exemption from IHT. Most AIM-listed companies provide investors with exemption from IHT, if they’re held for two years.