Government income from death tax set to rise 25% | Personal Finance | Finance [Video]

The Government is expected to rake in £7.5 billion from Britain’s ‘most hated tax’ this year – up 25 percent in just three years. The figures come from a new analysis of how much the government will receive from the estates of the dead through Inheritance tax.

Data released from the HMRC revealed that Britons paid a record £6 billion in IHT in the 2021/22 financial year, which is the most recent official audited figure.

Experts at Wealth Club have used this and trend data to suggest the total will rise by some 25 percent to £7.5 billion for the current – 2024-25 – financial year.

However, it is expected that Labour will change the rules around inheritance tax to rake in billions of pounds more, perhaps as early as a Budget in October.

Among the options on the table are scrapping the ability of people to pass on their pension pots free of tax …