HMRC have received a record breaking £5.2bn from inheritance tax for the 2017/2018 tax year, an 8% increase on the previous 12 months, with London and the south east being the highest paying areas, say accounting, tax and advisory firm Blick Rothenberg.
Rebecca Goldring, a manager at the firm, said: “As expected, the burden of IHT lies largely in the south of England with London and the South East being the highest paying areas.
“With the surge in property prices in the last decade, particularly in those regions, the increase in collections was predictable and I envisage further rises in the years to come.”
She added: “We will likely also see a shift in the demographic of those who pay the tax. IHT was once a tax that only the rich and super rich actually paid and was not a concern for the majority. In reality though, largely owing to housing price increases, we now expect that in the years to come the middle and working class families may also have to pay the tax.”
She added: “This is not however surprising, particularly as from April 2017 we saw a wave of new IHT rules for example the introduction of IHT charges for overseas individuals owning UK residential property through non-UK holding structures.
“With the government pledging earlier this year to review the current inheritance tax system with a view to making a ‘particularly complex’ tax ‘fit for purpose’, we expect to see further changes.”