IHT receipts see another year-on-year rise – comment on latest HMRC data

19 November 2021
 

New data out today from HMRC shows that IHT receipts for April 2021 to October 2021 were £3.6 billion - £0.6 billion higher than the same period a year earlier.  

Ami Jack, Head of National Tax at Smith & Williamson, part of wealth management and professional services group Tilney Smith & Williamson, commented: “Following the Chancellor’s extensive spending commitments announced in the recent Budget, the Treasury needs to do everything it can to boost its coffers to pay for the plans. The continuing year-on-year rises in IHT collections will therefore be welcomed by the Treasury.  

“The Budget was light on personal tax announcements, with no major changes to IHT. Outside of the Budget, however, the Government announced a 1.25% increase in national insurance contributions and income tax on dividends from 6 April 2022, demonstrating it is not afraid of tax rises and there may be more changes to come to personal taxes in the short to medium term.     

“With the outlook for personal taxes uncertain, people should continue to carefully consider their tax planning and make the most of current allowances before any further possible changes are introduced. By considering options such as making gifts and investing tax-efficiently, there are a number of areas of tax planning that may help reduce an IHT bill.”   

About Tilney Smith & Williamson

Tilney Smith & Williamson is the UK’s leading integrated wealth management and professional services group, created by the merger of Tilney and Smith & Williamson on 1 September 2020. With £56.0 billion of assets under management (as at 30 September 2021), it ranks as the third largest UK wealth manager measured by revenues and the sixth largest professional services firm ranked by fee income (source: Accountancy Age 50+50 rankings, 2021). The Group currently operates through three principal brands: Tilney, Smith & Williamson and online investment service Bestinvest. It has a network of offices across 28 towns and cities in the UK, as well as the Republic of Ireland and the Channel Islands. Through its operating companies, the Group offers an extensive range of financial and professional services to individuals, family trusts, professional intermediaries, charities and businesses. It is uniquely well-placed to support clients with both their personal financial affairs and their business interests. Tilney Smith & Williamson’s personal wealth management services include financial planning, investment management and advice, online execution-only investing and personal tax advice. For businesses, its wide range of services includes assurance and accounting, business tax advice, employee benefits, forensic advice, fund administration, recovery and restructuring and transaction services.