PRESS RELEASE: Biggest ever month for IHT bills as Middle England bears brunt

25 Apr 2016
  • £483 million in IHT bills March 2017
  • Political parties ‘must address IHT’ ahead of election  

Taxpayers paid a single month record of £483 million in Inheritance Tax last month, as Middle England taxpayers continue to bear the burden, says Collyer Bristow, the leading private client law firm.

Collyer Bristow says that the cost of IHT the last 12 months has risen to £4.8 billion, from £4.6 billion the year before and £3.1 billion five years ago.

Collyer Bristow says that IHT is being increasingly paid by middle income earners. As residential property prices have risen, so has the cost this of tax (property is one of the principle assets on which IHT is paid).

Collyer Bristow says that parties in the upcoming election need to put forward proposals reform IHT to lower the impact of the tax on middle income families.

James Badcock, Partner and Head of the Tax and Estate Planning team at Collyer Bristow, says “The record IHT bills last month highlight that the tax has drifted away from being a tax on the wealthy to being a burden on Middle England families. The recently introduced Main Residence Nil Rate Band is over-complicated and doesn't deliver what the political slogans promised.”

Collyer Bristow says that the increased IHT takings last month can also be attributed to the recent proposed rise in probate fees, which had been criticised as a "death tax". Executors have been rushing to apply for probate to avoid the mooted rise, but it has been shelved for the time being due to the snap General Election.