Inheritance tax receipts in the UK are set to reach record levels, with HMRC reporting £3.5bn collected between April and August, an increase of £300m from the previous year. The Chancellor, Rachel Reeves, is reportedly considering measures to further enhance revenue from this controversial tax, which currently stands at 40% on estates valued over £325,000. The Government is also looking into closing loopholes, such as the inheritance tax break on AIM shares, which could potentially raise an additional £4bn but inflict “irrecoverable damage ” to London's junior market. Shaun Moore, a tax expert at Quilter, said there was a “strong argument for simplifying the system” so that it was more appealing to gift during one's lifetime, adding: “The complexity of the current system often leads to confusion and inequities.”
