Inheritance tax receipts have hit a new record, reaching £7.6 billion between April 2024 and February 2025.
This is £0.8 billion higher than the same period last year.
The data from HM Revenue & Customs shows that the amount of inheritance tax raked in by the Treasury during the 11-month period has already overtaken the record £7.5 billion paid during the whole of the previous tax year.
The rising figures are being driven by a combination of high house price growth and frozen tax thresholds.
Stephen Lowe, director at Just Group, said: “Frozen thresholds and rising property prices have been the predominant forces behind this increase to date but changes announced at the Autumn Budget, which will be implemented from April 2026, look set to bring in even greater amounts over the remainder of the decade and beyond.
“The removal of pension death benefits from inheritance tax will come into force from 2027 and is likely to inflate receipts for the Chancellor even more.”
Lowe said the latest figures emphasise the importance of people getting an up-to-date valuation of their estate, including a recent assessment of their property wealth, to help them understand if they are likely to be liable for inheritance tax.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, commented: “IHT might not be the most widespread of taxes, but those caught in its web feel the pinch, especially if it’s a bill they weren’t expecting. The recent announcement that pensions will become liable for inheritance tax will also bring more people into the mix from 2027,” she said.
To lessen the impact, Morrissey said there is likely to be a rise in the use of gifting allowances, including the £3,000 annual exemption.
“For those with larger potential liabilities the ‘gifting out of surplus income’ rules will come in handy. However, they will need to make careful records to demonstrate the gifts are regular and that making them does not disrupt their standard of living,” she added.
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