Investment - Articles - Inheritance Tax registers a fifth consecutive annual record

Commenting, Marc Acheson, Global Wealth Specialist at Utmost, a leading provider of insurance-based wealth solutions, said: “Inheritance Tax receipts have registered a fifth consecutive annual record as more families continue to be drawn into the IHT net due to the decision at the Autumn Budget 2025 to maintain the freeze on thresholds until 2031.

 

“This decision, alongside the impact of various other reforms by the current government, means that the number of estates due to be caught by IHT is expected to double by 2030. 

 

“These reforms include the abolition of the non-dom regime and the inclusion of previously excluded property trusts within the scope of IHT, announced at the Autumn 2024 Budget. Additionally, unused pension pots will be brought within the scope of inheritance tax from April 2027, alongside reforms to business property relief.

 

"While IHT receipts are ever increasing, IHT itself is a deeply unpopular tax domestically and an outlier internationally, reducing the attractiveness of long-term UK residence. People can also plan around it whilst UK resident or avoid it if they move away from the UK early enough.”