Inheritance tax receipts continued to climb between April and July, as frozen thresholds and rising property values pulled more people into its scope.
HM Revenue & Customs’ latest figures show inheritance tax receipts for April to July 2026 reached £3.2 billion, which is £0.1 billion higher than the same period last year.
Receipts in June are the highest on record, the figures show.
HMRC said receipts are expected to rise in the coming years due to a combination of higher volumes of wealth transfers, recent rises in asset values and the Government’s decision to maintain tax-free thresholds at their 2020 to 2021 levels up to and including 2030 to 2031.
Lee Quinn, chartered financial planner at Titan Wealth, said: “Another rise in inheritance tax receipts builds on last year’s record haul and shows just how firmly IHT has moved from being a niche concern to a mainstream retirement planning issue.
“With a new Prime Minister in place and the Budget now in the diary, families will understandably be watching closely for any further changes.”
With unused pension funds set to be included within estates for inheritance tax purposes from next April, Quinn warned that retirement decisions should not be delayed.
“Retirement decisions cannot simply be put on hold until Budget day. The planned inclusion of unused pension funds within estates for inheritance tax purposes has already changed the equation for people who may previously have viewed their pension as something to preserve and pass on.
“For many families, the question is increasingly how they should use their wealth throughout retirement. That could mean reconsidering which assets to draw from first, how much to gift during their lifetime, or simply feeling more comfortable spending their pension. With the rules changing, having a retirement and estate plan that work together has never been more important.”
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The clock continues to tick down to unused defined contribution pensions being part of your estate for inheritance tax purposes. It’s a change that will boost the receipts of a tax that has already surged in recent years. The good news is that most people won’t be affected but those who are will be making plans to shield their loved ones as much as possible.”
