Investment - Articles - IHT tax train shows no signs of running out of steam

 The figure represents an increase of £97 million, or 7%, compared to the same period last year, when £1.38 billion was collected in April–May 2024/25, kickstarting a fourth consecutive annual record 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 coming with IHT predicted to generate £9.1 billion for the Treasury in 2025/26 and revenues are expected to raise more than £14 billion by 2029/30.

 Stephen Lowe, Director at retirement specialist Just Group, said: “The Treasury’s IHT revenues continue to surge with this tax train showing absolutely no signs of running out of steam through the first couple of months in this financial year. Over the past four years, rising asset prices and frozen thresholds have combined in a pincer movement to drive consecutive record annual totals. The reforms announced at the Autumn Budget 2024, which included further extending the threshold freeze and tightening the exemptions for pension wealth, will likely tip more estates into paying the tax and further boost the Chancellor’s coffers. Anyone who is uncertain or concerned that their estate may be subject to Inheritance Tax should get an up-to-date valuation of their estate, including a recent assessment of their property wealth. Estate planning is complex and difficult – especially with tinkering to the rules – and many families who wish to manage their estate efficiently will benefit from professional financial advice.”