Investment - Articles - IHT remains goldmine and set for record year as Budget looms

The figure represents an increase of £160 million, or 3%, compared to the same period in 2024/25 (£5.04 billion) setting the scene for a fourth consecutive record annual haul of £8.2 billion through the 2024/25 financial year.

 

The OBR’s most recent forecast, published at the Spring Statement, projects another record year for IHT. The tax is predicted to generate £9.1 billion for the Treasury in 2025/26 and its revenues are expected to raise more than £14 billion in 2029/30.

 

Stephen Lowe, director at retirement specialist Just Group, said: “Inheritance Tax remains a goldmine for the Treasury and looks set to offer the Chancellor another bumper year with takings driven by rising asset prices, frozen thresholds and a tightening of the exemption regime announced at the Autumn 2024 Budget. This trend of record-beating receipts looks set to continue given reforms announced at last year’s Budget are still to be implemented and rumours abound that the IHT regime will once more be in the Chancellor’s revenue-raising Red Box next Wednesday.

 

“In a changing tax environment, it is important that anyone who is uncertain or concerned that their estate may be subject to Inheritance Tax gets an up-to-date valuation of their estate, including a recent assessment of their property wealth. Estate planning is complex and difficult and it’s not made any easier when the rules are changing. Many families who wish to manage their estate efficiently will benefit from professional financial advice.”