WJM: Scotland’s IHT bill could reach £400m by 2026/27

Inheritance tax liabilities in Scotland are projected to surge significantly due to rising property values and frozen thresholds. By 2027, the number of estates subject to the tax will increase sharply in major cities like Edinburgh and Glasgow. Consequently, total tax revenue is expected to approach substantial figures, reflecting a broader national trend where more families are drawn into the tax net despite the unchanged exemption limits. Further reforms to Agricultural and Business Property Relief will intensify this impact by capping full relief at one million pounds. These changes will reduce exemptions for high-value qualifying assets, including AIM-listed shares, and are estimated to generate considerable additional revenue. This policy shift aims to close loopholes but will disproportionately affect wealthy estates with substantial agricultural or business holdings. This data is relevant to open data initiatives because it relies on Freedom of Information requests to uncover HMRC statistics. Transparent access to such administrative datasets allows researchers and the public to scrutinize government revenue projections and understand the real-world impact of tax policy. Open data thus facilitates accountability, enabling better analysis of how legislative changes affect estate planning and national finances across different regions.

Source: scottishlegal.com
Published on 2025-06-12

WJM: Scotland’s IHT bill could reach £400m by 2026/27

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