HM Revenue & Customs data today revealed that Inheritance Tax (IHT) receipts for April 2026 are £0.7 billion, which is £65 million lower than the same period last year.
Ian Dyall, Head of Estate Planning at wealth management firm Evelyn Partners, says:
‘While April 2026 saw a slight fall in IHT receipts, this is likely to be a short-term fluctuation rather than a change in the broader upward trend.
‘The fall comes at a time when families who have built up wealth might have half an eye on the news headlines. Even though there are several hurdles to be cleared before the Prime Minister is replaced in a leadership contest, there is already speculation emerging about what this could mean for tax policy.
‘Ever since Sir Keir Starmer’s position started to become precarious, it has seemed likely that whoever replaces him will come from somewhere further to the left of the Labour Party – with Andy Burnham the current favourite, if he wins his by-election. Add to this former Health Secretary Wes Streeting’s unexpected intervention this week on equalising capital gains tax with income tax – as well as the ongoing fragility of the UK public finances – and it’s perhaps unsurprising if some families are starting to fear that higher wealth taxes are very much on the table, even after taxes went up in the first two Budgets of this Government.
‘It’s not impossible that IHT and the gifting regime could feature in such discussions, and there is certainly willingness in the Treasury to target estates, as we saw with the substantial changes to IHT reliefs and exemptions at the October 2024 Budget. The capping of business reliefs is already in play, but it will be some time before we can see how that might increase IHT liabilities – and by then unspent pension assets will be subject to IHT too.
‘So, together with the creep of more estates and more assets into IHT thanks to frozen nil-rate bands, there is plenty for families to be thinking about, without the distraction of possible future changes to tax policy. It is very easy to make mistakes when trying to mitigate IHT without advice, so any family who thinks their estate will exceed nil-rate bands should consider seeking professional help.’
