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Inheritance Tax projections are scaled upwards

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Analysis suggests that an additional £900million in Inheritance Tax (IHT) receipts will be collected between now and 2022.

Paperwork which was released alongside last week’s Budget speech revealed that it was now thought a greater sum than expected would be brought in from the levy over the course of five years.

Back in March, officials at the Office for Budget Responsibility (OBR) estimated that around £32.4billion would flow into Treasury coffers during this time period.

But the figure has now been increased by almost £1billion in this month’s updated set of forecasts.

The OBR said that the adjustment took account of the fact that the number of people passing away each year continues to increase and that property prices are spiralling upwards, leading to an increase in the number of individuals eligible to pay tax.

It is understood that more rigorous enforcement by the team at HM Revenue & Customs (HMRC) has also had an impact on the figures.

Previous data revealed that Inheritance Tax receipts rose to £4.8 billion in the 2016/17 financial year and the figure is widely expected to edge over the £5billion mark in the current 12 month period.