HMRC’s latest figures show tax receipts continuing to climb, with both inheritance tax (IHT) and income tax-related revenues reaching record levels as frozen thresholds and rising asset values draw more individuals into the tax net.
Inheritance Tax receipts for April to June 2026 were £2.3 billion, which is £96 million higher than the same period last year. Income Tax, Capital Gains Tax and National Insurance contributions receipts for April to June 2026 were also at a record high of £132.1 billion, £11.4 billion higher than the same period last year.
Industry experts said the figures highlight the continuing impact of fiscal drag, with more households being drawn into higher tax bands and a growing number of estates becoming liable for inheritance tax.
Tom Trewby, Director of Private Client Tax at Forvis Mazars, described the trend as “a tax rise by stealth”, adding that “rising asset prices mean that inheritance tax is hitting families it never used to catch”.
Trewby pointed to HMRC projections showing the number of higher-rate income taxpayers is expected to rise to 7.7 million in the current tax year, while the number of additional-rate taxpayers is forecast to reach 1.29 million.
Shaun Moore, tax and financial planning expert at Quilter, said the longer-term trend remained clear despite month-to-month fluctuations.
“Frozen thresholds and growing asset values continue to pull more estates into the scope of inheritance tax,” he said.
The figures also come ahead of significant changes to inheritance tax rules due to take effect from April 2027, when pensions will fall within the scope of IHT.
Moore said that, alongside frozen thresholds, the changes point towards “steadily rising liabilities, placing greater emphasis on early and proactive estate planning based on the known rules”.
Trewby also highlighted the impact the reforms could have on both families and executors.
“The IHT landscape will shift from April 2027 as pensions fall into scope,” he said. “This won’t only mean higher IHT tax bills, but headaches for executors who will have an additional legislative burden.”
As a result, both commentators stressed the importance of seeking advice early.
“The most important step families can take now is to seek advice,” Trewby said.
Meanwhile, HMRC’s income tax and National Insurance figures continue to demonstrate the effect of frozen thresholds on personal taxation.
Moore described fiscal drag as “one of the Treasury’s most effective revenue-raising tools”, noting that frozen thresholds continue to pull more people into paying tax and push others into higher tax bands.
According to HMRC income tax liabilities statistics published last week and highlighted by Quilter, the number of people paying income tax is projected to rise from 33 million when thresholds were first frozen in 2021/22 to 40.8 million by 2026/27. The number of higher-rate taxpayers is also expected to reach 7.7 million.
Moore said: “What began as a temporary measure has evolved into one of the Treasury’s most reliable sources of additional revenue.”
Elsewhere, Capital Gains Tax receipts for June were £192 million, £27 million higher than the same month last year.
Moore said the broader trend reflects a tighter CGT regime following reductions to allowances and increases in tax rates. He also noted that debate around the future of wealth taxation could remain in focus under the new government.
However, he cautioned against making planning decisions based on speculation.
“Families should be cautious about making planning decisions based on rumours rather than policy,” he said, adding that major reforms often take time to develop and implement.
The latest figures provide further evidence of the growing importance of tax and estate planning.
With frozen thresholds continuing to boost receipts and pensions set to enter the inheritance tax net from April 2027, many clients are likely to benefit from reviewing existing arrangements sooner rather than later.
Main image: receipts, towfiqu-barbhuiya-xkArbdUcUeE-unsplash
