Record IHT and Other Tax Receipts Already for this Tax Year

HMRC tax receipts were published on Friday with Inheritance Tax (IHT) receipts for the first quarter (Q1) of tax year 2024/2025 (April to June 24).

In Its report, .GOV.UK confirms that IHT receipts hit a record £2.1bn for Q1.  This is £83m higher that for the same period in tax year 2023/24.

Q1 Tax Receipts 2024/25 and 2023/24 Compared

• Income tax receipts were £108.3bn, £1.9bn higher than Q1 tax year 2023/24.
• VAT receipts were £41.5bn, £11m lower than Q1 tax year 2023/24 so relatively stable.
• Business tax receipts were £20.5bn, £1.7bn higher than Q1 tax year 2023/24.
• Stamp Taxes and Annual Tax Enveloped Dwellings (ATED) tax receipts were £4.2bn, £0.5bn higher than Q1 tax year 2023/24.
• Hydrocarbon Oil (fuel duty) tax receipts were £6.2bn, £59m than Q1 tax year 2023/24.
• Tobacco duty tax receipts were £1.9bn, £0.2bn higher than Q1 tax year 2023/24.
• Alcohol duty tax receipts were £3bn, £36m lower than Q1 tax year 2023/24.
• Environmental tax receipts were £0.8bn, £4m higher than Q1 tax year 2023/24.
• Air Passenger Duty tax receipts were £1bn, £92m higher than Q1 tax year 2023/24.
• Inheritance tax receipts as mentioned above were £2.1bn, £83m higher than Q1 tax year 2023/24.

See https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk/hmrc-tax-receipts-and-national-insurance-contributions-for-the-uk-new-monthly-bulletin

Comment

Total HMRC Tax & NICs receipts for Q1 2024/25 were £195.1 billion, a huge £4.7 billion higher than Q1 2023/24.  That said, to recover from £600bn covid debt with overall national debt now at its highest point since 1962 of 99.5% of our gross domestic product (GDP) is going to take a generation.

Paying higher taxes is to be the new ‘norm’ for years to come.  Frozen tax allowances until 2027/28 are already hurting us all so we urge you to talk to us about mitigating inheritance taxes as there are many ways to plan for IHT.  In addition, make sure you use as much of any allowances or tax breaks such as pension tax relief as you can.

We have nearly 100 videos explaining IHT and how to save/reduce IHT, see how to halve your estate instantly IHT Discounted Gift