Another bumper year for inheritance tax

HMRC received £5.4bn inheritance tax during 2018-19 according to HMRC statistics. This is an increase of 3% (£166m) on 2017-18 and maintains the upward trend since 2009-10.

The annual figures show that in 2016-17 4.6% of UK deaths resulted in an inheritance tax charge compared with 4.2% in 2015-16. This continues the longer-term increase in this proportion since 2009-10 and is partly due to the freezing of the £325 000 nil-rate band since April 2009.

The total number of UK deaths that resulted in an inheritance tax charge has increased every year since 2009-10. In 2016-17 there were 28 100 an increase of 3 600 (15%) since 2015-16.

The gross capital value of estates since 2009-10 has increased by around £15bn to £80.1bn in 2016-17. About 80% of this increase was in residential property. 

The combined value of agricultural and business property reliefs was £2.1bn in 2016-17 falling...