Inheritance tax receipts for April to June 2025 hit £2.2 billion, a £0.1 billion rise on the same period last year.
Data from HM Revenue & Customs showed the freeze on inheritance tax thresholds, coupled with rising property prices, have continued to drag more people into the net.
The Government’s decision to make pensions subject to inheritance tax from 2027 will see this figure continue to rise, say experts.
Shaun Moore, tax and financial planning expert at Quilter, said: “With nil-rate bands frozen until 2030 and property prices still elevated, more families are being caught in the IHT net, often without any deliberate wealth accumulation.”
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “It’s a tax that only affects a relatively small number of people, but it is universally hated, and frozen tax thresholds are pulling more people into the net.
“However, there are signs that people are looking into what they can do to ease the burden. This includes giving money away while they are still alive, rather than waiting to leave it in a will.”
Elsewhere, income tax, capital gains tax and NICs receipts for April to June were £120.5 billion, a £9.4 billion rise on the same period of 2024.
However, while the Government’s stealth tax strategy has led to tax receipts climbing, capital gains tax has been the notable exception.
Moore said: “The Government’s decision to slash Capital Gains Tax allowances and hike rates has backfired. CGT receipts have fallen sharply, from nearly £17 billion in 2022-23 to £14.5 billion in 2023-24 and to just £13.1 billion in 2024-25.
“The policy may have been designed to raise revenue, but it’s instead prompted behavioural shifts that have dented the tax take.”
Moore pointed out that the shift in behaviour is particularly “relevant” amid renewed speculation about a ‘wealth tax’.
“While taxing the wealthiest may sound politically appealing, the CGT experience shows that people will change behaviour or adjust their financial plans to mitigate the tax bills. A wealth tax could accelerate the exodus triggered by the abolition of non-dom status – undermining the very revenue it aims to raise,” he added.
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