Inheritance tax receipts for the first three months of the current tax year reached £2.2 billion, an increase of £100 million from the previous year. This increase continues a long-term upward trend. The inheritance tax allowance has been frozen at £325,000 for 16 years, exacerbating the issue due to rising house prices and inflation. While it currently affects a small percentage of estates, more families could face liabilities. Lifetime gifts are seen as increasingly attractive to avoid these taxes.
"Inheritance tax continues to be a meal ticket for HMRC. While wealth taxes, IHT's uglier sibling, will be in the spotlight in the run up to the Autumn Budget it wouldn't be entirely surprising to see further tinkering with IHT too."
"As things stand inheritance tax may only affect a small percentage of estates, but that number is on the increase as an ever greater number of estates become liable for the most hated of taxes."
"The current inheritance tax allowance has been frozen at £325,000 for 16 years...These freezes are a form of stealth tax, which allows the government to increase their take without a backlash from a headline grabbing tax hike."
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