Another way to keep the bill down is by gifting to charities. This can provide relief which can reduce an individual’s income tax liability.

Gifts to qualifying charities are also exempt from inheritance tax and if an individual leaves broadly 10 percent of their estate to charity in their Will, their estate would only suffer a 36 percent inheritance tax rate, rather than the usual 40 percent.

Shaun Moore, tax and financial planning expert at Quilter also commented on the latest figures saying: “The latest figures show that in the 2021 financial year up to November, the government collected £4.1billion in inheritance tax receipts, up from £0.6billion in the same period in 2020.

“The higher tax take is a continued demonstration of the Chancellor’s fiscal drag, which is slowly increasing government tax revenues without seeming to be too much of a burden on taxpayers.