Investment - Articles - Inheritance Tax receipts set new record with a month to go

 Stephen Lowe, Director at Just Group, said: “Another year, another record-busting Inheritance Tax haul for the Treasury – that’s four consecutive years of all-time highs. Frozen thresholds and rising property prices have been the predominant forces behind this increase to date but changes announced at the Autumn Budget, which will be implemented from April 2026, look set to bring in even greater amounts over the remainder of the decade and beyond. The removal of pension death benefits from Inheritance Tax will come into force from 2027 and is likely to inflate receipts for the Chancellor even more. It emphasises the importance of people getting an up-to-date valuation of their estate, including a recent assessment of their property wealth, to help them understand if they are likely to be liable for Inheritance Tax. Estate planning is complex and professional financial advice can be immensely helpful for people who want to manage their estate efficiently.”

 Simon Martin, Head of UK Technical Services at Utmost Wealth Solutions: “Inheritance Tax has already racked up another record tax-take in 2024/25 and, with one more month of receipts still to be counted, it looks set to substantially exceed the last tax year’s total. The freeze in the IHT thresholds and rising asset prices are the likely drivers of this fiscal boost for the Treasury. Ahead of next week’s Spring Statement and despite lobbying in some areas, we are not expecting any further reforms to the Inheritance Tax regime but there will be updated projections from the OBR. This will be notable given the further widening of the scope of Inheritance Tax from April 2026, as well as the changes to IHT on pensions in 2027, which mean that the tax is set to continue delivering record sums for the Chancellor throughout the rest of the decade. Following the changes announced at the Autumn Budget, we have already seen an uptick increase in clients seeking professional advice around Inheritance Tax to ensure they understand how the reforms will impact them.”

 Government Statistics for HMRC Tax and NICs