Inheritance tax (IHT) receipts fell again in June, according to the latest data from HM Revenue & Customs (HMRC).
The statistics show that IHT receipts accounted for £357 million in June 2019, which is a 9 per cent drop on the same month last year, when £393 million was raised.
IHT receipts had increased earlier in the year, but there has now been a downward trajectory in consecutive months.
In total £5.4 billion was paid in IHT receipts last year, with the average tax bill being just under £200,000.
The data for the second quarter of 2019 (April – June) shows that there has been a 15 per cent drop in IHT receipts on the same period in 2018.
A review of the inheritance tax rules was commissioned by the Government in an attempt to simplify the tax system, with the first report being published in November last year.
The final report proposed a change to the ‘seven-year rule’ relating to the taxation of gifts, with the Office of Tax Simplification (OTS) suggesting that the period of inclusion should be reduced to five years.
The review also recommended changes to the taper relief, but experts have warned that any changes must be carefully considered.
The review of inheritance tax was commissioned by the Chancellor, Phillip Hammond MP last year.
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