Investment - Articles - Inheritance Tax revenue engine on track for record year

According to the most recent OBR forecast from the Autumn Budget 2025, Inheritance Tax receipts are forecast to raise £8.7 billion in 2025-26, a 4.5% increase from last year. IHT receipts are expected to continue to rise over the remainder of the decade, driven by rising house and equity prices alongside the impact of the policies announced in Autumn Budget 2024, and are expected to reach £14.5 billion in 2030-31.

 

Stephen Lowe, director at retirement specialist Just Group, commented: “Inheritance Tax continues to be a quiet but powerful revenue engine for the Treasury, with another bumper year of receipts on the cards as rising asset prices, frozen thresholds and tighter exemptions do the heavy lifting. With record-breaking takings rolling in and last year’s Budget reforms still feeding through, Inheritance Tax is securing its spot as one of the Treasury’s most dependable money-spinners. In a changeable fiscal environment, it is important that anyone who is uncertain or concerned that their estate may be subject to IHT gets ahead of the game. An up-to-date valuation of their estate, especially an assessment of their property wealth, will be crucial to future planning. Estate planning is complex and it’s not made any easier when the rules are shifting. Many families who wish to manage their affairs efficiently will benefit from professional financial advice.”