“Inheritance tax receipts hit £5.5bn”

Mar 22, 2022 | Tax

OK, this won’t make even a tiddly dent on the Government’s cashflow needs – they borrowed another £20bn in the last month alone! But it’s a lot of money if you’re selling your late parents’ house to pay the bill. Yes, it’s continuing-to-rocket house prices which are plundering the inheritance they hoped to leave after a lifetime’s hard work/providing a small but welcome increase in tax receipts from the wealthy, pick your side of the fence. And IHT allowances have been frozen for the next 4 years (at least) so it’s lose-lose/win-win, pick your side etc.

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“HMRC scraps plans to tax pensions after death”

“HMRC scraps plans to tax pensions after death”

A couple of other Statement Highlights (in my world, anyway). A welcome ‘nothing happened’ on the treatment of pensions on death. They were never going to be liable to IHT (too complicated with trusts and trust law) but there was talk of making them income-taxable on the recipients at whatever age you die.

“Raising IHT threshold could cost government £6bn”

“Raising IHT threshold could cost government £6bn”

Well, the lesson of this week in politics must be to expect the unexpected. Or, alternative interpretation, to expect more of the same. The speculation on the future of Inheritance Tax has switched from abolition to a rise in the amount of wealth you can have before the 40% payment hits.