Inheritance Tax Up By GBP 1 Billion

November 24, 2017 Taxation in UK

Inheritance taxLONDON – More people dying and expensive houses mean that the UK government will enjoy an extra GBP 1 billion windfall.

New information released by the UK Office for Budget Responsibility shows that UK taxpayers will soon hand over nearly GBP 1 billion more in inheritance taxes than previously forecast.

In March this year, the government’s own projections showed that between 2016 and 2022 approximately GBP 32.4 billion will be collected from inheritance taxes.

However, this forecast has already been reviewed upward by approximately GBP 900 million over that timeframe.

The increase in the expected collection has been attributed to a higher than forecast mortality rate, and increase in the value of the houses and assets that fall under the scope of the tax, and an improved rate of enforcement by the HM Revenue and Customs.

The difference in what was previously expected to be collected, and what is now expected to be collected, is approximately GBP 200 million per year in 2018-19 and 2019-20, and GBP 300 million in 2017-18, narrowing down in 2020-21 to noting in 2021-22.