HMRC has collected £7.1bn in inheritance tax (IHT) from April 2022 to February 2023, a £1bn increase compared to the same period the previous year.
The rise is attributed to years of house price increases, soaring inflation, and tax freezes, which have pushed more families above the IHT threshold.
There have been suggestions that the Government may increase the threshold or cut the tax rate to win votes in the next general election.
The Office for Budget Responsibility forecasts IHT receipts could reach £7.2bn this tax year, accounting for 0.7% of all receipts and 0.3% of national income.
Alex Davies, CEO and founder of Wealth Club, said: “It will be interesting to see if Rishi Sunak opts to change this in a bid to win popularity in the upcoming polls.
“With a deficit of £125bn, equivalent to £1,870 per head of the UK’s population, it could be an expensive tactic.”
