Inheritance tax (IHT) receipts have soared, following a record-breaking 2024/25 financial year that saw a total of £8.2bn collected, according to HMRC figures.
The increase marks the continuation of a trend driven by rising asset values and the freezing of tax-free thresholds.
Stephen Lowe, director at retirement specialist Just Group, said: “Today’s IHT figures prove the two certainties in life – death and taxes.
“And with rising asset prices, frozen thresholds and last year’s reforms, IHT looks set to deliver a bumper tax take for the fifth year in a row.”
The Office for Budget Responsibility (OBR) has forecast a fifth consecutive record year, with IHT predicted to generate £9.1bn for the Treasury in the 2025/26 financial year.
The OBR projects this figure will continue to climb, exceeding £14bn by 2029/30.
Lowe added that with the chancellor feeling fiscal pressure, it is “entirely possible” that IHT will once more be in her sights.
“With more estates being subject to inheritance tax, and the prospect of further changes to the rules on the horizon, it is important that people keep track of the valuation of their estate, including a recent assessment of their property wealth.”
Ian Dyall, head of estate planning at wealth management firm Evelyn Partners, said the continued rise is a result of ‘fiscal drag’.
“With the NRBs frozen until 2030, raised property values and investment assets are drawing more families into the IHT net—often without them realising it.
“This is before the changes to IHT reliefs announced at the 2024 Budget have come into force – changes that are already reshaping estate planning.”
Dyall cautioned that without action, the steady increase could turn into a surge once new rule changes go live, such as the inclusion of defined contribution pension pots in estates from April 2027 and the dilution of business and agricultural property reliefs from April 2026.
“These changes mean that many traditional estate planning strategies — such as mirror wills or sole ownership of business assets — may no longer be optimal,” he said.
“Families that own businesses need to be proactive… The rise in receipts is not just a fiscal story, it’s a wake-up call. Many households are sleepwalking into substantial tax bills.”
