Inheritance tax receipts reached £730 million in May 2026, up from £701 million in May 2025, official figures show.
However, receipts for April and May totalled £1.4 billion, £37 million lower than the same period last year.
Experts warned that while monthly fluctuations may occur, the “broader direction” remains clear, with the inclusion of unused pension funds in inheritance tax from next April, coupled with rising property values and frozen thresholds, set to see more people become liable for the tax.
The nil-rate band has remained unchanged at £325,000 since 2009 despite property prices increasing substantially over the same period, with the freeze set to stay in place until 2031.
According to the Office for Budget Responsibility, inheritance tax receipts remain on course to reach £14.5 billion in 2030/31.
Shaun Moore, tax and financial planning expert at Quilter, said: “While monthly figures can fluctuate, the broader direction remains clear, with more estates being drawn into scope as thresholds remain frozen and asset values persist.”
Moore added that Andy Burnham’s victory in the Makerfield by-election is likely to bring the wider debate around wealth taxation “further into focus.”
“Burnham has previously argued for scrapping Inheritance Tax in its current form and replacing it with a broader levy on wealth or estates. However, he has also indicated that any near-term policy would remain within Labour’s existing manifesto commitments and fiscal framework. That suggests more radical reform remains a longer-term prospect, likely tied to a future general election rather than imminent change.
“In the meantime, the direction of travel is already established. Frozen thresholds and the inclusion of pensions from 2027 point towards steadily rising liabilities, placing greater emphasis on early and proactive estate planning.
“We are also now firmly in the final year where pension wealth remains outside the scope of Inheritance Tax, with unused pension pots due to be brought within the taxable estate from April 2027. That will significantly increase the number of families facing a liability.”
Nick Henshaw, head of intermediaries distribution at Wesleyan, added: “With less than a year to go until pensions are liable for inheritance tax, many advisers are doing what they can to support clients in planning ahead. But detailed guidance is still lacking from HMRC at this point, leaving a lot of guesswork – making giving clear advice a challenge.
“The inclusion of pensions will see swathes of people grappling with questions about inheritance tax, including those who have never needed to consider it before now. Advisers should focus on ensuring their clients are aware of all the options at their disposal, so that they are prepared to make informed decisions when the timing is right.”
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