Inheritance Tax (IHT) Statistics!

Over £2.5bn was paid to HMRC in inheritance tax last year – this was a record high. It was 8% more than the previous year and 92% more than the amount collected back in 2010/11.

Some of the standout facts released by HMRC include:

  • 2017/18 was a record year for IHT receipts at £5.228 billion
  • In 2015/16, 4.2% of UK deaths were liable to IHT
  • In 2015/16 there were 24,500 estates which paid IHT, with an average IHT bill of £179,000

The amount collected by HMRC continues to rise each year. The main drivers have been increasing property values, rising stock markets and growing levels of cash savings balances. These factors combined with the freezing of the IHT allowance since April 2009 (£325,000) have combined to push IHT receipts up each year.

Tax year      IHT Receipts (£ billion)      % increase on previous year
2017/18       £5.2                                         8%
2016/17       £4.8                                         4%
2015/16       £4.6                                         22%
2014/15       £3.8                                         12%
2013/14       £3.4                                         9%
2012/13       £3.1                                          8%
Source: HMRC Inheritance Tax Statistics, July 2018

Is the new residence nil rate band making a difference?

IHT receipts continue to rise despite the new residence nil rate band being introduced in April 2017.
IHT is usually paid at 40% if a person’s estate is worth more than £325,000 when they die.
For deaths on or after 6 April 2017, a main residence nil rate band is available in addition to the standard nil rate band of £325,000. Both bands are transferable between spouses and civil partners, and couples have the potential to pass on IHT free estates of up to £1 million in value from 6 April 2020. The main residence nil rate band will be the net value of the home (i.e. after any outstanding mortgage or liabilities) to a maximum of:

  • £125,000 for 2018/19
  • £150,000 for 2019/20
  • £175,000 for 2020/21

Ann-Marie Matthews is a solicitor in the private client team at Barker Gotelee, Solicitors in Suffolk.

Suffolk Probate Solicitors – for more information on our range of legal services, please call the team on 01473 611211 or email