Inheritance Tax receipts for April 2024 to March 2025 are £8.2 billion, which is £0.8 billion higher than the same period last year, HM Revenue and Customs revealed today.
That is an increase of 10.8% on the same period of 2023/24.
Ian Dyall, Head of Estate Planning at wealth management firm Evelyn Partners, comments:
“The inheritance tax take for the Treasury has notched up another record financial year. That’s a trend that is unlikely to change as long as nil-rate bands remain frozen, which is currently until at least 2030. Even with market turbulence like we have seen recently, long-term increases in asset values tend to draw more estates across the IHT thresholds, and the inclusion of unspent pension funds in IHT liabilities from April 2027 – along with the dilution of agricultural and business reliefs next year – will give that trend a big leg up.
“Extended financial market turmoil and a possible recession could hit tax revenues and borrowing costs for the Government, in which case Treasury minds will wander towards further areas that can be tapped to shore up the public finances. So the Chancellor might not be done with IHT reform quite yet.
“The recent financial market turbulence will, however, have hit the value of some estates in the short term, especially those that are heavily invested in the stock market. One silver lining of this for some families could be an IHT rebate.
“If their estate was valued on death, say, six months ago and the IHT bill settled on the basis of that, then by the time probate is granted and assets have been liquidated, it could be that the total value of the estate has dropped. Executors should check the estate’s value at the point it is distributed to beneficiaries and compare this to the estimate given to HMRC when the IHT liability was calculated. It could be that the estate is due some money back from HMRC.”
About Evelyn Partners
We are a leading wealth management group, created by the merger of Tilney and Smith & Williamson in 2020. With £63.0 billion of assets under management (as at 31 December 2024) we are one the largest UK wealth managers. Our purpose is ‘to place the power of good advice into more hands’.
We have a network of offices across 25 towns and cities in the UK, as well as the Republic of Ireland and the Channel Islands, supporting private clients, charities, family trusts and providing investment solutions to financial intermediaries. Our clients include entrepreneurs, C-suite senior managers and partners of professional firms.
Our expertise includes both award-winning financial planning and investment management, enabling us to offer clients a truly holistic dual expert wealth management service. Through Bestinvest, we provide an online investment platform and coaching service for self-directed investors.
