This morning’s HMRC update shows that Inheritance Tax (IHT) receipts totalled £7.7 billion through the first eleven months of the 2025/26 financial year (April 2025 to February 2026), an increase of £132 million compared to the same period in 2024/25 (£7.6 billion).
With just one month of tax receipts left to be collected in the current financial year, IHT seems set to exceed last year’s record haul of £8.3 billion and hit the £8.7 billion forecast by the Office for Budget Responsibility (OBS) at the Spring Statement 2026.
Looking further ahead, IHT receipts are expected to grow even more. The OBR forecasts an expected annual IHT take of £14.7 billion by 2031, due in most part to the IHT policies announced in the Autumn Budget 2024.
Experts are reacting to the latest figures below:
David Cooper, director at retirement specialist Just Group, commented:
“Inheritance Tax continues to rake in record sums with the first eleven months of this financial year bringing in an additional £132 million in revenue compared to the same period last year.
“More people are finding themselves caught in the IHT net, as frozen thresholds and rising asset prices push more estates above the threshold. Policy changes announced at the Autumn Budget 2024, particularly the inclusion of pensions within IHT, will likely accelerate this trend as inheritance tax becomes a consideration for more people. The OBR estimates that around one in ten estates will be liable for the tax by 2030-2031.
“We encourage anyone who feels their estate may be subject to IHT to obtain an up-to-date valuation of their assets, including property wealth. Estate planning can be complex, and a professional adviser can provide valuable support for those looking to manage their estate efficiently and pass on as much as possible to loved ones.”
Ian Dyall, Head of Estate Planning at wealth management firm Evelyn Partners, says:
‘The monthly HMRC figures confirming that inheritance tax (IHT) receipts continue to climb come as no surprise to those of us working closely with families on long‑term wealth planning. The trend has slowed of late – perhaps due to slower house price growth in recent years – but still puts the Treasury firmly on track for another record financial year of total receipts in 2025/26.
‘The expansion of IHT is not a result of sudden shifts in wealth, but rather years of fiscal drag. Nil rate bands have been frozen for many years while asset values, particularly property, have continued to inflate. Rising asset prices benefit the holders of investments and properties but the danger is that these households are sitting on an unexpectedly large, and rising, tax bill for their beneficiaries at death.
‘From a planning perspective, more estates that would once have been considered comfortably below the IHT threshold are now creeping into taxable territory. Families often discover this only when dealing with bereavement and the administration of Wills, by which point opportunities for mitigation have significantly narrowed. As the UK approaches key legislative changes – notably the inclusion of unspent pension funds within IHT from 2027 – many more families risk being drawn into the IHT net, placing additional pressure on beneficiaries who may not consider themselves affluent.
‘The growth of IHT revenues serve as a reminder that, as reflected in many of our clients, IHT is no longer a marginal concern affecting only the very wealthiest, as it used to be. Families with modest and commonplace levels of wealth can now benefit from some careful estate planning and IHT-mitigations strategies.
‘Such proactive planning can include regular estate valuations, early use of allowances and reliefs, and lifetime gifting, as well as possibly the use of trusts. With some very large pension pots about to enter the taxable estate in just over a year’s time, the cost of inaction has never been higher.’
Mark Lambert, Head of Onshore Bond Distribution, Chesnara Life (UK) Ltd:
“The latest HMRC figures on Inheritance Tax receipts show that Inheritance Tax receipts for April 2025 to February 2026 are £7.7 billion, which is £0.1 billion higher than the same period last year and look likely to continue to increase.
“Government forecasts from the Office for Budget Responsibility show receipts could more than double to £14.5 billion by the 2030/31 tax year1 as the freeze on IHT tax-free thresholds continues.
“Advisers are seeing rising demand for support from clients and growing interest in the tax effective wrappers available with onshore bonds increasingly seen as a key part of the product mix.
“Using an onshore investment bond, particularly as a trust investment, delivers attractive tax deferment and tax management benefits for IHT and estate planning, including other features such as top slicing relief and 5% tax deferred withdrawals. In addition, lifetime transfers by way of assignment without consideration are not taxable events.”
Samantha Warner, Legal Director at Winckworth Sherwood, said:
“IHT revenues continue to steadily rise due to the prolonged freeze on IHT thresholds. The nil-rate band (NRB) and the residence nil-rate band (RNRB) have not been adjusted for inflation or rising property values, which means more estates are becoming liable for the tax as asset values increase. It remains a persistent and unavoidable inheritance tax planning issue, and one that should not be ignored. To avoid unexpected financial burdens, it is crucial for individuals to regularly review their wills and estate planning, with professional legal advice, to manage their wealth efficiently.”
Will Hale, CEO of Key Equity Release said:
“Today’s HMRC data reinforces the role inheritance tax plays as one of the government’s most under the radar but dependable revenue raisers. An ever-tightening IHT backdrop is reshaping how advisers approach asset drawdown strategies, with the family home playing a growing role in retirement income and intergenerational wealth transfer planning .
With pensions set to fall into IHT calculations next April, the old drawdown sequencing rules are being re-written and ‘which pot do we spend?’ has become one of the most consequential questions families will explore with advisers.
Estate planning advice is far from straightforward and advisers recognise the need to be fully equipped with insight, tools and support to serve clients that must now look more holistically at their accumulated wealth drawdown options if good outcomes are to be achieved.
Those over 55 hold £3.7 trillion in property equity and it’s crucial that the home forms part of wealth drawdown and legacy planning advice. Advice must include how products such as modern lifetime mortgages can form part of an efficient intergenerational wealth transfer and retirement funding strategy.”
Simon Martin, Head of UK Technical Services at Utmost, a leading provider of insurance-based wealth solutions, commented:
“Despite a slowdown in the rate of growth, Inheritance Tax receipts are on course for another record-breaking year and remain a powerful revenue generator for the Treasury.
“More families continue to be drawn into the Inheritance Tax (IHT) net due to the decision at the Autumn Budget 2025 to maintain the freeze on thresholds, with the nil-rate band remaining at £325,000 since 2009, and rising property values and asset growth pushing ever more estates above the tax-free limit.
“While this may be good news for the Treasury, this record tax burden is not good for the UK’s competitiveness and increasingly, we are seeing behavioural changes as people look at ways to defer, mitigate or avoid a larger than previously expected tax hit. Our recent analysis of Trust Registration Service (TRS)1 data showed that Trust use continued to rise, with 121,000 new trusts registered in 2024/5, taking the total number to 835,000, as people use them as a core planning tool to organise succession and manage long-term family wealth. Families are also increasingly turning to ‘gifting with control’ strategies to reduce the taxable value of their estate.”
Nicholas Nesbitt, Partner at Forvis Mazars commented:
“The latest HMRC figures confirm another surge in inheritance tax receipts, bringing the total take for the year to £7.7 billion and bearing out OBR predictions of a total IHT take of £9 billion by the end of the tax year.
“With thresholds frozen – an effective tax rise in all but name – more estates are being pulled into the IHT net, posing problems for asset-rich but cash-poor families. This tax take arrives before the 2027 rules bring pensions into the estate, a shift that will see receipts soar from next April. Business Property Relief and Agricultural Property Relief will also be capped at £2.5 million from next month, bringing further funds into the Treasury’s coffers.
“Mitigating the tax is possible, but considered planning is needed. Making use of allowances while you are able to is essential, as is knowing the rules around gifting. Every family’s circumstance is different and considering professional advice is key.”
