Inheritance tax receipts reached £0.8 billion in April, the latest figures from HM Revenue & Customs show.
It marks an increase of £97 million compared to the same period of last year and is the second highest monthly total ever recorded.
A combination of frozen tax thresholds and rising property prices have continued to fuel the tax’s upward trajectory, with receipts increasing more than 50% over the past five years.
Shaun Moore, tax and financial planning expert at Quilter, said: “With property prices remaining high and nil-rate bands still frozen until 2030, more families are being caught by IHT, many without realising until it’s too late.”
Tim Snaith, partner at Winckworth Sherwood, said: “The nil-rate band and the residence nil-rate band have not been adjusted for inflation or rising property values, which means more estates are becoming liable for the tax as asset values increase. It remains a persistent and unavoidable inheritance tax planning issue, and one that should not be ignored.”
Upcoming changes to business and agricultural relief in 2026 and the inclusion of unused pensions in estates from 2027 means this trend is likely to continue going forward.
According to Andrew Tully, technical services director at Nucleus: “Receipts will increase further in the years to come due to recent policy changes and extending the freeze in IHT nil-rate bands to 2029/30, as well as ongoing increase to property prices across the UK.
“These changes are likely to make IHT a more relevant issue for many more families within the next five years. Advisers can help clients mitigate these taxes by setting up trusts and making use of gift allowances and the spousal exemption.”
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said that while only a “small number of estates” currently pay inheritance tax, it is still important for people to be aware of any looming liabilities they have and consider making use of various gifting allowances.
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