Inheritance Tax (IHT) revenues hit £5.7bn in the eight months to the end of November – up £600m or roughly 10.5% compared to the same period last year, according to the latest data from HM Revenue and Customs.
As a result, IHT revenues are on course to break the £8bn barrier for the first time in 2024-25, potentially hitting £8.25bn, up from £7.5bn in 2023-24.
This is likely to continue further as the new Labour government put further IHT gains in its sights in its first Budget in power for 14 years.
Government estimates expect around one in 10 estates to be liable for IHT by 2030, up from one in 20 at present.
Writing in Health & Protection last month, St. James’s Place divisional director development and technical consultancy Tony Müdd explained some of the ways this could assist protection advisers.
He argued that the raft of IHT changes Budget could bring wealth managers and protection advisers closer than ever as they attempt to find mitigation strategies for their clients.
And protection insurers are also expected to look further at the issue to offer solutions.
Royal London has already released a joint life second death option for its proposition which it expects will help to mitigate IHT liabilities.
There are also concerns that the government may be dragging death-in-service benefits into IHT consideration.