New statistics released indicate that residents in the United Kingdom paid a record amount in inheritance tax (IHT) back in July this year, after the number of COVID-related deaths spiked within the month.
According to recent figures from the Office for National Statistics (ONS), the total receipts from the 40 percent death duty reached £571 million in July, the greatest amount ever paid within a single month to date.
This significant increase means that the UK’s Treasury has now taken a staggering £2.1 billion since the beginning of the tax year that started in April. This is £500 million more than it collected in the same term in 2020.
Experts have suggested that this record intake is not only due to COVID-19 deaths, but also because of the tax break freeze, and the fact that more estates are now becoming eligible for IHT due to house prices increasing.
Those seeking help with retirement planning in Chester, including concerns regarding IHT, can look to wealth managers for support and advice. These expert financial advisors can help clients ensure they have enough funds to appreciate their retirement while devising mitigation strategies for inheritance tax bills, allowing them to pass on more of their wealth to nominated beneficiaries.
Her Majesty’s Revenue and Customs has stated that it is still too early yet to confirm whether the increased death rate and the higher IHT intake were connected, but the recent statistics will increase the pressure on the UK’s Chancellor of the Exchequer to overhaul the tax.