Inheritance tax receipts to double by 2030

Taxpayers in the UK are set to pay a total of £10 billion a year in inheritance tax by 2030, according to projections from Canada Life.

The most recent data from the Office for National Statistics shows that the Government collected £5.2bn in inheritance tax receipts in 2017/18.

This was an increase of around £1.38bn compared to the same time ten years earlier.

Canada Life's analysis, based on current revenue trends, predicts a much faster pace of change in the next decade.

It says this is a result of the nil-rate band having been frozen at £325,000 since 2009, which may mean more people are liable for inheritance tax as asset values increase.

The research also revealed that 18% of estates worth up to £1 million do not have an estate plan, meaning they may be paying more inheritance tax than necessary.

Neil Jones, market development manager at Canada Life, said:

"There's plenty that can be done within the existing rules to reduce an inheritance tax bill.

"Perhaps because of a very British reluctance to discuss death, many people won't bring up estate planning.

"As a consequence the Government is undoubtedly receiving tax that with proper planning wouldn't need to be paid."

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