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\t\tInheritance tax receipts are on track for a record breaking year\t<\/p>\n\t\t\tFriday 19 September 2025 11:49 am\n\t\t\t<\/p>\n
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\t\tInheritance tax receipts are on track for a record breaking year\t<\/p>\n
Inheritance tax (IHT) receipts are on course for a record breaking year, as an increasing number of Brits brace themselves for further potential tax changes.<\/p>\n
According to the latest HMRC data, IHT receipts hit \u00a33.7bn in the first five months of the 2025\/26 tax year, continuing their two decade long upward trend.<\/p>\n
This is also \u00a30.2bn higher than the previous year.<\/p>\n
Nicholas Hyett, investment manager at Wealth Club said: \u201cInheritance tax continues to be a cash cow for HMRC.\u201d<\/a><\/p>\n \u201cWhile wealth taxes, IHT\u2019s uglier sibling, will be in the spotlight in the run up to the Autumn Budget it wouldn\u2019t be entirely surprising to see further tinkering with IHT too.\u201d<\/p>\n Threshold freeze and IHT changes<\/p>\n An increasing number of estates are finding themselves subjected to inheritance tax, as frozen allowances, matched with increasing house prices and rising inflation has pushed more people over the threshold, despite not considering themselves to be wealthy.<\/p>\n The inheritance tax threshold <\/a>stands at \u00a3325,000 and is set to remain frozen until 2030, while the \u00a3175,000 residence nil rate band hasn\u2019t changed since 2020.<\/p>\n Hyett said: \u201cThese freezes are a stealth tax, which allows the government to increase their take without a backlash from a headline grabbing tax hike, but still contribute to the highest tax burden in 70 years.\u201d<\/p>\n Meanwhile, more people will soon find themselves subjected to inheritance tax, with pension assets set to be included in estates from April 2027.<\/p>\n The government estimates the decision will raise a total \u00a31.5bn by 2030, bringing an additional 1.5 per cent more estates on top of the current 4 per cent.<\/p>\n James Scott-Hopkins, founder of EXE Capital Management, said: \u201cThis insidious freezing of thresholds by recent governments is simply to fool the populace into believing taxes are not really rising.<\/p>\n \u201cAnd it will only get worse, with more people\u2019s estates being dragged into the IHT net.\u201d<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tRumoured changes to inheritance tax gifting spark concern for middle-class<\/a><\/p>\n Industry figures are calling for savers to consider reducing their IHT bill through methods including early gifting and investing in unlisted companies that qualify for Business Property Relief, as these are typically inheritance tax free for two years.<\/p>\n Capital Gains Tax and Budget warning<\/p>\n Capital Gains Tax (CGT) also increased by 8 per cent from \u00a3854m, with HMRC collecting \u00a3922m in the first five months.<\/p>\n CGT receipts <\/a>are estimated to surge to \u00a325.5bn by the 2029\/30 tax year.<\/p>\n