The last financial year delivered record IHT revenues of £8.2 billion and the latest OBR forecasts on IHT made at the Spring Statement estimate that the tax would raise £9.1 billion for the Treasury in 2025/26, with this figure rising to more than £14 billion by the end of the decade.
This morning’s data also found that the Chancellor has collected £423 million in Capital Gains Tax (CGT) through April-May 2025/26, a rise of £106 million in comparison with the same period in the previous financial year (£317 million in April-May 2024/25). CGT receipts for the 2024/25 financial year came in £2.6 billion below the OBR’s 2024 Autumn Budget’s forecast of £15.7 billion but are estimated to hit £25.5 billion by 2029/30 – nearly twice current levels.
Simon Martin, Head of UK Technical Services at Utmost Wealth Solutions, a leading provider of insurance-based wealth solutions, commented:
On Inheritance Tax statistics
"Inheritance Tax is becoming an increasing revenue stream for the Treasury, with frozen thresholds and rising property values pulling more estates into the tax net each year. These fiscal trends will accelerate further over the coming years following the measures announced at the 2024 Autumn Budget, which tightened certain asset and wealth exemptions as well as extending the threshold freeze. It is still too early to assess how the changes from the 2024 Autumn Budget are materially impacting tax receipts, but forecasts already point to a sharp increase in IHT revenues. Media rumours this week suggest the Treasury may be reconsidering its extension of IHT to non-doms’ worldwide assets, which also suggests that the broader impact of these reforms may still be in flux amid widely reported outflows of wealth from the UK. The reforms will continue to drive a significant increase in demand for financial planning, as families look to understand how the new regime could affect them and how best to adapt their intergenerational wealth strategies.”
On Capital Gains Tax statistics:
“Capital Gains Tax receipts declined last year by more than £1 billion while the OBR had to downgrade its estimated tax take at the Spring Budget primarily caused by declines in the value of financial assets. We also saw wealth outflows and behavioural changes both ahead of and following the revenue-raising 2024 Autumn Budget casting doubt over how successful the reforms will be. Nonetheless, asset price inflation and the increases to CGT rates should still mean that receipts return to growth this year and the tax take is predicted to nearly double to over £25 billion by the end of the decade. Following the recent Spending Review, rumours are likely to swirl that further reforms to the CGT regime could be on the way given the Government’s pledge not to increase Income Tax, VAT or National Insurance for workers.”
https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
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