Brits face soaring bills as IHT on gifts skyrockets 153%

IHT on gifts reaches £256m in 2020/21, HMRC data reveals

Sahar Nazir
clock • 2 min read

A growing number of Brits are finding themselves caught out by inheritance tax (IHT) on gifts, according to HM Revenue & Customs.

The amount of IHT paid on gifts has witnessed a 153% surge since 2011, reaching £256m in the 2020/21 tax year, HMRC told national financial advice firm Continuum in a Freedom of Information request. The disclosure further indicated an increase of more than 120% in the number of estates paying IHT on gifts since 2011, with 1,300 estates succumbing to the tax in the 2020/21 period. Estates are held liable to pay IHT on gifts made within the seven years preceding the individual's death. In the 2011/12 tax year, estates paying IHT on gifts averaged £171,186. By the 2020/21 tax year, this ...

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