Figures from HMRC revealed that £1.3bn was paid in stamp duty, higher than the £1.2bn collected in August. Compared to the same month last year, this was down from the £1.4bn collected.
Since the start of the tax year in April, £7.5bn has been paid in stamp duty, slightly up on £7.4bn last year.
IHT intake jumps
Meanwhile, £936m was collected in IHT in September, up from £598m the month before. This was also higher than the £671m paid in IHT during the same month last year.
Since the start of the tax year, £4.7bn has been paid in IHT, higher than the £4.4bn collected over the same period last year.
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Will Hale, CEO of Key Equity Release, said the data underlined the need for holistic advice that looked at financial and estate planning for older clients, including later life lending.
Hale added: “Next week’s Budget could bring more changes to IHT rules, but advisers will already be factoring the changes to unused defined contribution pension funds coming into play from 6 April next year within their approach to retirement planning.
“The importance of considering property wealth alongside pensions and investments within tax planning strategies is growing and wealth managers and IFAs need to respond. A truly holistic approach should include looking at later life lending options as part of an overall strategy. IFAs and wealth managers are who are not qualified in or do not want to advise on products such as modern lifetime mortgages need to set up referral partnerships with specialist advisers who can help ensure good outcomes for their clients.”
Ian Dyall, head of estate planning at Evelyn Partners, said that despite some moderation in property prices across some parts of the country, “the long-term direction of travel of exposure to IHT remains firmly upwards”.
Amit Joshi, managing director of wealth at Mattioli Woods, said the frozen thresholds pulled more families into the tax net and “rising property values and inflation are quietly turning what was once a tax for the wealthy into a bill for ordinary households”.
He said the lack of awareness was also concerning, as “estates that would have paid nothing a decade ago are now automatically liable, without a single announcement”.
Joshi added: “Regularly reviewing wills and estate plans, and seeking professional financial advice, is no longer optional. It’s essential to protect family outcomes, preserve control, and ensure hard-earned wealth goes where it was intended, not where it happens to land.”
