IHT receipts hit record high of £2.3bn

Inheritance tax (IHT) receipts from April to June hit a record high of £2.3bn, according to the latest figures from HMRC.

This is £96m higher than the Treasury collected in the same period last year.

Income tax, capital gains tax (CGT) and National Insurance Contribution (NIC) receipts for April 2026 to June 2026 were also at a record high at £132.1bn – an increase of £11.4bn.

Tom Trewby, director of private client Tax at Forvis Mazars said: “The upward trajectory of tax receipts continues for HMRC as fiscal drag pulls more people over the frozen thresholds.

“It’s a tax rise by stealth: rising asset prices mean that inheritance tax is hitting families it never used to catch, while the number of higher-rate UK income taxpayers is expected to rise to 7.7 million in the current tax year – nearly two million higher than in 2023-24.

“The number of additional-rate taxpayers, who earn more than £125,140 and pay the 45p rate of income tax, is projected to reach 1.29 million this year.

“The IHT landscape will shift from April 2027 as pensions fall into scope. This won’t only mean higher IHT tax bills, but headaches for executors who will have an additional legislative burden.

“The most important step families can take now is to seek advice. Doing this early is the best way to navigate through these changes, and make the most of the reliefs and exemptions available.”

Shaun Moore, tax and financial planning expert at Quilter, said: “With Andy Burnham now established as prime minister, questions around the future direction of wealth taxation are likely to intensify.

“Burnham has previously argued for reform of wealth taxes and has expressed support for alternatives to the current inheritance tax system, although any significant changes would need to be carefully balanced against the government’s wider economic priorities.

“There is already speculation about whether ministers could revisit aspects of estate, property or wealth taxation as they search for revenue.

“While such discussions are likely to continue, families should be cautious about making planning decisions based on rumours rather than policy. The reality is that major reforms often take time to develop and implement.”

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Amit Joshi, managing director of wealth at Mattioli Woods, said: “Rising property values and inflation are quietly turning what was once a tax for the wealthy into a bill for ordinary households.

“Estates that would have paid nothing a decade ago are now automatically liable, without a single announcement.

“What is most concerning isn’t the tax itself, but the lack of awareness. Families often only realise the impact when it’s too late to act.

“Inheritance tax has become a planning issue by stealth, and the cost of inaction is measured in lost choices, rushed decisions, and unnecessary tax.

“Regularly reviewing wills and estate plans, and seeking professional financial advice, is no longer optional. It’s essential to protect family outcomes, preserve control, and ensure hard-earned wealth goes where it was intended, not where it happens to land.”

Nick Henshaw, head of intermediaries distribution at Wesleyan, said a rise in receipts “comes as little surprise”.

“The latest projections from the OBR predict that inheritance tax receipts will rise to 1.4 per cent of GDP by 2030/31, reflecting an ageing population.

“This is largely being driven by the planned inclusion of pensions within estates from next April, which is leading many clients to reassess how they structure their retirement and legacy plans.

“Advisers have a vital role to play in helping clients understand the potential impact and avoid making reactive decisions.”

Lee Quinn, chartered financial planner at Titan Wealth, added: “We are seeing growing demand from clients who want to understand their position before the new rules take effect.

“Whatever comes next from the Treasury, early planning remains essential, as the most effective options often require time.”