With just one month of tax receipts left to be collected in the current financial year, IHT seems set to exceed last year’s record haul of £8.3 billion and hit the £8.7 billion forecast by the Office for Budget Responsibility (OBS) at the Spring Statement 2026. Looking further ahead, IHT receipts are expected to grow even more. The OBR forecasts an expected annual IHT take of £14.7 billion by 2031, due in most part to the IHT policies announced in the Autumn Budget 2024.
David Cooper, director at retirement specialist Just Group, commented: “Inheritance Tax continues to rake in record sums with the first eleven months of this financial year bringing in an additional £132 million in revenue compared to the same period last year. More people are finding themselves caught in the IHT net, as frozen thresholds and rising asset prices push more estates above the threshold. Policy changes announced at the Autumn Budget 2024, particularly the inclusion of pensions within IHT, will likely accelerate this trend as inheritance tax becomes a consideration for more people. The OBR estimates that around one in ten estates will be liable for the tax by 2030-2031. We encourage anyone who feels their estate may be subject to IHT to obtain an up-to-date valuation of their assets, including property wealth. Estate planning can be complex, and a professional adviser can provide valuable support for those looking to manage their estate efficiently and pass on as much as possible to loved ones.”
Simon Martin, Head of UK Technical Services at Utmost: “Despite a slowdown in the rate of growth, Inheritance Tax receipts are on course for another record-breaking year and remain a powerful revenue generator for the Treasury. More families continue to be drawn into the Inheritance Tax (IHT) net due to the decision at the Autumn Budget 2025 to maintain the freeze on thresholds, with the nil-rate band remaining at £325,000 since 2009, and rising property values and asset growth pushing ever more estates above the tax-free limit. While this may be good news for the Treasury, this record tax burden is not good for the UK’s competitiveness and increasingly, we are seeing behavioural changes as people look at ways to defer, mitigate or avoid a larger than previously expected tax hit. Our recent analysis of Trust Registration Service (TRS)1 data showed that Trust use continued to rise, with 121,000 new trusts registered in 2024/5, taking the total number to 835,000, as people use them as a core planning tool to organise succession and manage long-term family wealth. Families are also increasingly turning to ‘gifting with control’ strategies to reduce the taxable value of their estate.”
(1) HMRC, Statistics on trusts in the UK December 2025
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