Inheritance tax receipts rose to £5.8 billion in the first eight months of the 2025/26 tax year, new data from HM Revenue and Customs has revealed.
This figure is £84 million higher than the same period last year, putting it on track for another record year.
Shaun Moore, tax and financial planning expert at Quilter, said: “With the nil-rate band still fixed at £325,000, rising property values and accumulated savings mean more estates are being drawn into IHT, often among families who would not traditionally consider themselves wealthy.
“What was once viewed as a tax affecting a small minority is steadily becoming a broader concern.”
Simon Martin, head of UK technical services at Utmost Wealth Solutions, commented: “By extending the freeze on inheritance tax nil-rate bands and allowances at the Autumn Budget 2025, more estates are likely to fall within the scope of IHT over the coming years.
“Combined with the significant structural reforms announced at the Autumn Budget 2024, inheritance tax looks set to remain an increasingly important and reliable source of revenue for the Treasury for the foreseeable future.
“That said, it was welcome to see relatively limited further tinkering with the regime in the recent Budget. Stability of tax legislation gives families and advisers greater certainty, allowing them to plan more effectively in what is already a complex and long-term area of financial planning.”
Experts noted that the pressure is set to intensify from April 2027 when pensions are due to be brought into the scope of inheritance tax.
Moore said: “For many households, pensions now represent one of the largest components of wealth, meaning future liabilities could be far larger than people expect.
“Against this backdrop, discussions around lifetime gifting limits carry added significance. Any move in this direction would represent a meaningful shift in how wealth is passed between generations. While the detail of any future reform remains uncertain, the direction is clear: more estates, over a longer period, are likely to face inheritance tax.”
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