In April 2025, HMRC collected an eye-catching £780 million in inheritance tax—the second-highest monthly amount ever recorded. This figure was £97 million higher than in April 2024, driven by a combination of frozen tax thresholds and rising property values.
This single month’s intake helped push the total inheritance tax revenue for the 2024–25 tax year to a record £8.2 billion, capturing more families across the UK within the inheritance tax net.
Why Inheritance Tax Bills Are Increasing
Two main factors are contributing to the rise in taxable estates. First, the tax-free allowance—known as the nil-rate band—has remained unchanged at £325,000 per individual since 2009. Second, the residential nil-rate band, which applies when passing a main residence to children or grandchildren, is still capped at £175,000.
