Currently, Inheritance Tax (IHT) receipts are 11% higher than during the same 11-month period in 2023/24, when they totaled £6.8 billion.
“Another year, another record-breaking IHT windfall for the Treasury—marking four consecutive years of all-time highs,” said Just director Stephen Lowe.
“The surge has largely been driven by frozen thresholds and rising property prices. However, changes announced in the Autumn Budget, set to take effect from April 2026, are expected to further increase IHT revenue throughout the rest of the decade and beyond.”
“The removal of pension death benefits from inheritance tax, set to take effect in 2027, is expected to further boost IHT receipts for the chancellor.”
Quilter tax and financial planning expert Shaun Moore noted that the rise in IHT receipts has “become an inescapable feature of the tax system,” with the £325,000 nil-rate band and £175,000 residence nil-rate band remaining frozen until 2030.
“Rising property prices, particularly in the South East, are worsening the situation, leaving many families unexpectedly facing a 40% tax charge on inherited wealth,” Moore said. “Further policy changes will only intensify these challenges.”
