Inheritance tax yield hits six-year peak

by Calum Fuller

More from this author

01 Aug 2014

  • Comments
HM Revenue and Customs

THE YIELD taken from families paying inheritance tax has hit a six-year high, official figures show.

Families were charged £3.4bn in death duties last year, an increase from £3.1bn in the previous 12 months, the Office for National Statistics said. The total was only slightly below the £3.5bn anticipated by the Office for Budget Responsibility, the government's financial forecaster.

HM Revenue & Customs received a similar windfall in its inheritance tax take in 2007/2008, when a record £3.8bn was paid.

Takings dropped substantially to £2.4bn in 2009/2010, when the government allowed people to pass their allowance to their spouse on death, but have risen for four consecutive years since. The threshold at which the 40% IHT charge is triggered has been frozen at £325,000 per person since 2009.

Collections are up because of rising property prices and static allowances, the ONS said.

"Residential property makes up approximately a third of the total value of taxpaying estates and the ongoing rise in property prices has contributed to a rise in overall tax take," it said in a statement.

"At the same time, as the average value of estates rises, an increasing number of estates will now be valued over the IHT threshold (or nil rate band), which has been frozen at £325,000 since April 2009."

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Manager / Senior Accountant - ACA or ACCA Qualified

WavelengthWavelength - Northampton - c£35K - £42K

 
 
 
 
 
 
 
 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.