HMRC today announced the latest Inheritance Tax (IHT) receipts, within their wider tax receipts document > HMRC tax receipts and National Insurance contributions for the UK (monthly bulletin) – GOV.UK
· IHT receipts for April 2025 are £800m, which is £97m higher than the same period last year.
· This continues the strong upward trajectory over the last few years (see graph and table immediately below)
· The current £325,000 nil rate band has been at that level since 2009. The residential nil rate band was introduced on a phased basis between 2017 and 2020 and potentially gives an additional £175,000 nil rate band (making a total of £500,000) subject to certain rules.
| Tax year | IHT receipts (£bn) |
| 2020/21 | 5.3 |
| 2021/22 | 6.1 |
| 2022/23 | 7.1 |
| 2023/24 | 7.5 |
| 2024/25 | 8.2 |
| 2025/26 (1 month) | 0.8 |
Andrew Tully, Technical Services Director at Nucleus said:
‘IHT receipts have increased more than 50% over the past five years with the OBR suggesting significant increases will continue over the next few years. This first month of the new tax year is continuing that upward trend. Receipts will increase further in the years to come due to recent policy changes including limits to agricultural and business reliefs and extending the freeze in IHT nil-rate bands to 2029/30, as well as ongoing increases to property prices across the UK. If the Government’s proposals to include pensions within the estate for IHT purposes from April 2027 are introduced that will drive further strong growth.
These changes are likely to make IHT a more relevant issue for many more families within the next five years. Advisers can help clients mitigate these taxes by setting up trusts and making use of gift allowances and the spousal exemption.”
