Inheritance tax receipts are on track for another record-breaking year, after reaching £7.1 billion between April 2025 and January 2026, data from HM Revenue & Customs has shown.
The figure is £0.1 billion higher than the same period last year.
David Cooper, director at Just Group, said: “Inheritance tax is an important and growing source of tax revenue for the Treasury and looks set to creep past last year’s total and notch up a fifth consecutive annual high.”
Cooper said the combination of frozen thresholds and rising asset prices has both widened the tax base and increased total receipts.
The new policies announced at the Autumn Budget 2024, which will see pensions included in the scope of inheritance tax from next April, are only set to build momentum over the coming years.
Cooper added: “An increasing number of estates will tip over the thresholds, and the inclusion of pension wealth could see inheritance tax becoming a consideration for more people. The Office for Budget Responsibility estimates that around one in 10 estates will be liable by 2030-31.”
Will Hale, CEO of Key Advice & Air, said it is vital that property wealth is considered in the financial planning process.
“Increasing the tax take on people’s wealth at death continues to be viewed by this government as a key strategy as they seek to address the pressures facing public finances.
“More people than ever before need quality advice around efficient intergenerational wealth transfer. And, with over £3.7 trillion in property equity in the hands of the over 55s, it is vital that the home is considered within the financial planning process.
“Whether due to the tax environment or other socio-economic drivers, later life lending is rapidly moving from niche to norm and this is an opportunity that needs to be embraced by all advisers – whether that be mainstream mortgage brokers, IFAs, wealth managers and even accountants and solicitors.”
The data from HMRC also revealed a sharp increase in capital gains tax receipts, which totalled £17 billion in January, up from £10 billion in January 2025.
Total receipts for the period February 2025 to January 2026 were £20.6 billion.
Shaun Moore, tax and financial planning expert at Quilter, said: “The changes to Capital Gains Tax, which have seen the annual exempt amount slashed and higher tax rates introduced on many assets, have started to bite.
“Until now, the data had suggested a change in behaviour, with investors delaying selling, reducing disposals or restructuring their affairs entirely. However, today’s huge jump in the tax take will be music to the Chancellor’s ears and suggests many were unable to avoid the tax hit for any longer.”
Malvee Vaja, chartered financial planner at Rathbones, commented: “January is typically a standout month for capital gains tax because of the self-assessment deadline but this year’s figures were particularly striking.
“Capital gains tax is one of the most behaviour‑sensitive parts of the system. People tend to bring decisions forward when change is expected, then delay selling once higher taxes are in place. That makes single‑month spikes hard to read in isolation. It will take time to see whether this surge represents a one‑off spike or a more durable shift in behaviour.
“For individuals, the key point is that standing still is no longer cost‑free. Strategically realising gains, making full use of ISAs and pensions, and thinking about timing rather than reacting at the point of sale can all help keep CGT manageable in a tougher environment.”
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