The Office for Budget Responsibility (OBR) released its latest projections today (26 March) alongside Chancellor Rachel Reeves’ Spring Statement, forecasting that IHT will generate £66.9 billion between 2024/25 and 2029/30.
Compared to estimates from the Autumn Budget, this means the Treasury is now expected to receive an additional £2.4 billion in IHT revenue during this Parliament.
In today’s Spring Statement, Chancellor Rachel Reeves remained relatively quiet on tax changes, in contrast to the Autumn Budget, where pensions were brought into the IHT scope and the £350,000 threshold was confirmed to remain frozen until 2030.
IHT receipts are projected to reach £8.4 billion in 2024-25, an 11.6% increase from 2023-24, primarily driven by rising asset prices in the latter half of 2024 and the continued freeze on tax-free thresholds. Receipts are then expected to climb to £14.3 billion by 2029-30.
Just Group director Stephen Lowe commented: “The OBR’s latest forecasts have once again revised the expected IHT intake upwards, now projecting that the levy will generate an additional £2.4 billion by the end of the decade.”
