IHT receipts to become an increasing issue for families

Inheritance Tax (IHT) will become an increasing issue for families over the next five years, as record receipts show no signs of slowing.

The latest HM Revenue & Customs data* revealed continued year-on-year growth. Between April and September 2025, IHT receipts totalled £4.4bn, around £100m more than during the same period in 2024, representing a 2.3% increase.

April 2025 alone saw £800m in receipts, which was the second-highest monthly total on record, representing a £97m increase over April 2024.

If the current pace continues, total receipts for the 2025/26 tax year could reach approximately £8.8bn, up £600m on 2024-25, setting yet another record.

Looking ahead, the Office for Budget Responsibility (OBR) forecasts that IHT revenues could potentially rise to £14bn by the end of the decade.

Nucleus Financial technical services director Andrew Tully said: “IHT receipts have grown by more than 50% over the last five years, a trend that is predicted to continue and accelerate. This is due to the freezing of nil rate bands until April 2030, rising UK property values and planned reductions to agricultural and business reliefs from April 2026.

“Taken together all of this is likely to make IHT a more relevant issue for many more families within the next five years.  Advisers can help clients mitigate these taxes by setting up trusts and making use of gift allowances and the spousal exemption.”

  • Contact hello@cailean.co.uk or call us on 01577 212577 to discuss your Inheritance Tax planning.

* HMRC, October 2025

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority does not regulate will writing, tax and trust advice and certain forms of estate planning.

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