Inheritance tax receipts fell in April but experts have warned it is likely to be a short-term fluctuation rather than a long-term trend.
The latest figures from HM Revenue and Customs show inheritance tax receipts for April 2026 were £0.7 billion, which is £65 million lower than the same period last year.
Ian Dyall, head of estate planning at Evelyn Partners, said: “While April 2026 saw a slight fall in IHT receipts, this is likely to be a short-term fluctuation rather than a change in the broader upward trend.
“The fall comes at times when families who have built up wealth might have half an eye on the news headlines. Even though there are several hurdles to be cleared before the Prime Minister is replaced in a leadership contest, there is already speculation emerging about what this could mean for tax policy.”
Amid growing speculation that a replacement for Keir Starmer may lean more to the left of the Labour Party, Dyall said it is “perhaps unsurprising if some families are starting to fear that higher wealth taxes are very much on the table”.
“Together with the creep of more estates and more assets into IHT thanks to frozen nil-rate bands, there is plenty for families to be thinking about, without the distraction of possible future changes to tax policy,” he added.
Rachael Griffin, tax and financial planning expert at Quilter, pointed out that this set of figures marks an important milestone as it is the final April before new rules take effect in April 2027 which will see unused pension pots brought within the scope of inheritance tax.
Griffin said: “That shift is likely to have a profound effect on future receipts. Pensions have long been one of the largest assets held outside the estate and bringing them into scope significantly increases the number of people paying what was once a tax for the very wealthy.
“As a result, next tax year IHT receipts are expected to rise sharply, with these figures likely to look modest in hindsight. Combined with frozen thresholds and ongoing pressure from property values, the trajectory for IHT remains firmly upwards, placing even greater emphasis on early and proactive estate planning.”
Lee Quinn, chartered financial planner at Titan Wealth, said: “Today’s HMRC inheritance tax receipts still underline how firmly inheritance tax has moved up the agenda for families and advisers alike, even though the latest monthly figures showed a slight fall compared with the same period last year.
“With pensions due to fall within the scope of inheritance tax from 2027, more families are continuing to review gifting strategies, pension withdrawals and broader estate planning earlier than they may have done historically, particularly high-net-worth individuals who are increasingly conscious of future liabilities.”
Nick Henshaw, inheritance tax expert at Wesleyan Financial Services, said the priority for advisers should be stress-testing estates against the new rules. Where clients are considering drawing down from their pension, they should explore alternatives first, he noted.
“Moving savings or other assets into trust structures can reduce estate exposure without touching the pension – keeping retirement income intact. Tools like smoothed funds can help manage sequencing risk where drawdown strategies are changing.
“The right action will depend on what each client needs from their retirement. By modelling the actual tax position, advisers will play a key role in ensuring clients don’t rush into irreversible decisions,” Henshaw explained.
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