Tax receipts are continuing to rise as frozen thresholds and higher asset values bring more people into the tax net. With Andy Burnham now prime minister, attention is turning to whether his government will pursue further changes to wealth and inheritance taxes, particularly ahead of pensions being brought into the scope of Inheritance Tax from April 2027.
Industry professionals are reacting to the latest figures below:
Shaun Moore, tax and financial planning expert at Quilter:
“Inheritance Tax receipts for April to June are £2.3 billion, which is £96 million higher than the same period last year.
“While monthly figures can fluctuate, the longer-term picture remains one of rising tax exposure. Frozen thresholds and growing asset values continue to pull more estates into the scope of inheritance tax.
“With Andy Burnham now established as prime minister, questions around the future direction of wealth taxation are likely to intensify. Burnham has previously argued for reform of wealth taxes and has expressed support for alternatives to the current inheritance tax system, although any significant changes would need to be carefully balanced against the government’s wider economic priorities.
“There is already speculation about whether ministers could revisit aspects of estate, property or wealth taxation as they search for revenue. While such discussions are likely to continue, families should be cautious about making planning decisions based on rumours rather than policy. The reality is that major reforms often take time to develop and implement.
“In the meantime, the direction of travel is already well established. Frozen thresholds and the inclusion of pensions from April 2027 point towards steadily rising liabilities, placing greater emphasis on early and proactive estate planning based on the known rules. With just a matter of months before pensions become liable to IHT it is worth reviewing plans to see if they are fit for the future.”
Nick Henshaw, Head of Intermediaries Distribution at Wesleyan, said:
“A rise in receipts comes as little surprise given the continued freeze on thresholds, elevated property values and significant wealth being passed between generations. While monthly figures can fluctuate, the long-term trend is clear: many more families and individuals will find themselves within the scope of inheritance tax over the coming years.
The latest projections from the OBR predict that inheritance tax receipts will rise to 1.4 per cent of GDP by 2030/31, reflecting an ageing population. This is largely being driven by the planned inclusion of pensions within estates from next April, which is leading many clients to reassess how they structure their retirement and legacy plans. Advisers have a vital role to play in helping clients understand the potential impact and avoid making reactive decisions.
Inheritance tax is no longer a concern reserved for the wealthiest households. As more people are drawn into the tax net, regular reviews and early planning will be key to helping clients preserve more of their wealth for future generations.”
Tom Trewby, Director, Private Client Tax at Forvis Mazars commented:
“The upward trajectory of tax receipts continues for HMRC as fiscal drag pulls more people over the frozen thresholds.
“It’s a tax rise by stealth: rising asset prices mean that inheritance tax is hitting families it never used to catch, while the number of higher-rate UK income taxpayers is expected to rise to 7.7mn in the current tax year – nearly 2mn higher than in 2023-24. The number of additional-rate taxpayers, who earn more than £125,140 and pay the 45p rate of income tax, is projected to reach 1.29mn this year.
“The IHT landscape will shift from April 2027 as pensions fall into scope. This won’t only mean higher IHT tax bills, but headaches for executors who will have an additional legislative burden.
“The most important step families can take now is to seek advice. Doing this early is the best way to navigate through these changes, and make the most of the reliefs and exemptions available.”
Lee Quinn, Chartered Financial Planner, Titan Wealth:
“IHT receipts have risen, reminding us that it’s become a concern for wider group of families and drawing more wealth in.
“This increase coincides with the ushering in of a new Prime Minister and an ongoing discussion about the future of the Treasury. The arrival of Andy Burnham in Number 10 and the unveiling of a new Chancellor will inevitably prompt questions about whether the direction of inheritance tax policy could change again. However, families cannot plan on the basis of political speculation, and the reforms already scheduled will have significant implications for how pensions are used and wealth is passed on.
“We are seeing growing demand from clients who want to understand their position before the new rules take effect. Whatever comes next from the Treasury, early planning remains essential, as the most effective options often require time.”
Mark Jephcott, Senior Relationship Manager at Utmost, commented:
“Inheritance Tax continues to generate historically high tax revenues for the Treasury as frozen thresholds and rising asset values bring more families within scope of the tax.
“The Autumn Budget 2025 extended the threshold freeze until 2031, while the scope of IHT continues to expand following reforms to Business Property Relief that came into effect on 6 April 2026 and with unused pension pots set to fall within the scope of Inheritance Tax from April 2027.
“While these measures are increasing tax receipts, it is making the UK a less competitive destination for entrepreneurs, investors and internationally mobile wealthy individuals, who make an outsized contribution to the tax take.”
