The government received a record £7.6bn from inheritance tax over the past 11 months, setting a new annual record before the tax year is over.
HM Revenue & Customs figures show IHT receipts from April 2024 to the end of February 2025 have already surpassed last year’s annual total of £7.5bn, which was also a new record.
Receipts for the tax year so far are 11% higher than the equivalent 11-month period last year when they totalled £6.8bn.
Just Group director Stephen Lowe says: “Another year, another record-busting inheritance tax haul for the Treasury – that’s four consecutive years of all-time highs.
“Frozen thresholds and rising property prices have been the predominant forces behind this increase to date but changes announced at the Autumn Budget, which will be implemented from April 2026, look set to bring in even greater amounts over the remainder of the decade and beyond.
“The removal of pension death benefits from inheritance tax will come into force from 2027 and is likely to inflate receipts for the Chancellor even more.
“It emphasises the importance of people getting an up-to-date valuation of their estate, including a recent assessment of their property wealth, to help them understand if they are likely to be liable for IHT.”
Quilter tax and financial planning expert Shaun Moore says: “The steady rise in IHT receipts has become an inescapable feature of the tax system.
“With the nil-rate band (£325,000) and residence nil-rate band (£175,000) frozen until 2030, the government has ensured that more estates are pulled into paying this deeply unpopular tax.
“Rising property prices, particularly in the South East, are compounding the issue, leaving many families unexpectedly liable for a 40% tax charge on inherited wealth.
“What was once a tax on the wealthiest estates is increasingly burdening middle-income families with no obvious route for mitigation.”
Key Advice chief executive Will Hale says: “There is a clear need for a fundamental reassessment of the role of property wealth in financial planning with many older clients owning considerable capital tied up in their homes which should be put to work funding their retirement and, where appropriate, helping children and grandchildren on to or step-up the 0property ladder with gifting.”
