Government receipts from inheritance tax continue to soar with HMRC collecting an additional £100m from this levy in the first quarter of the financial year.
HMRC data show IHT tax receipts in July 2026 stood at £868m, bring the total for the 2026 finical year to £3.2bn — £0.1bn higher than the same period last year.
IHT tax receipts for July were lower than for June 2026, although both months were higher than the equivalent months in 2025.
This is the fifth consecutive year that IHT receipts have reached record levels after thresholds have remained frozen, but asset prices, included property have continued to rise.
Forecasts from the Office of Budgetary Responsible show IHT receipts containing to rise, as pensions will also be included within IHT calculations for the first time from April 2027.
Zedra senior business development manager Corrinne Emmett says: “Recent and upcoming changes to IHT rules are bringing more estates into scope than ever before.
“The planned changes taking effect in the 2027/28 tax year will bring most unused pension funds into IHT calculations. The nil rate band has remained frozen at £325,000 since 2009 and is currently set to remain unchanged until 2030, which means that more estates than ever before will be subject to IHT.”
She says frozen allowances and upcoming changes are likely to see more people seeking help with IHT and estate planning.
Evelyn Partners head of estate planning Ian Dyall adds: “The growth of inheritance tax receipts has slowed in recent months, probably as a result of moderating property values in London and the South East over the last few years, which will have reduced the value of some estates.
“But no one should let this lull them into complacency over the potential reach of IHT. We have not yet seen the effects of the restrictions to agricultural property and business reliefs that came in this April.
“And the scope of IHT will increase dramatically from next April, when unspent pension assets become part of savers’ estates, not least as bullish equity markets have boosted pension pots in recent years.
“That will mean more families become subject to IHT and estates that are already facing an IHT bill could be looking at an even greater one.”
He pointed out that there beneficiaries of those older than 75 are at risk of a “super-sized tax burden” from next April — as they could also pay income tax at their marginal rate when they withdraw funds from the pension, after it’s already been depleted by IHT.
He adds: “‘The spousal exemption [on IHT] becomes even more valuable after next April, as it is pretty much the only way to ensure a bequeathed pension will not be subject to IHT, on the first death at least.
“That means not just that pension savers should check their beneficiary nominations, as many will have put down their children under the current regime, a choice that might need rethinking.”
He adds that long-term co-habitaing partners with significant pensions or other assets might consider getting married for a big tax saving on the first death — as was widely covered in the media this week after Ricky Gervais revealed he is considering marrying his long-term partner for this very reason.