The latest HMRC data reveals that Inheritance Tax receipts for April 2026 are £0.7bn, which is £65m lower than the same period last year.
Commenting on the latest figures Evelyn Partners head of estate planning Ian Dyall said: “While April 2026 saw a slight fall in IHT receipts, this is likely to be a short-term fluctuation rather than a change in the broader upward trend.
“The fall comes at a time when families who have built up wealth might have half an eye on the news headlines. Even though there are several hurdles to be cleared before the Prime Minister is replaced in a leadership contest, there is already speculation emerging about what this could mean for tax policy.”
He added: “Ever since Sir Keir Starmer’s position started to become precarious, it has seemed likely that whoever replaces him will come from somewhere further to the left of the Labour Party – with Andy Burnham the current favourite, if he wins his by-election.
“Add to this former Health Secretary Wes Streeting’s unexpected intervention this week on equalising capital gains tax with income tax – as well as the ongoing fragility of the UK public finances – and it’s perhaps unsurprising if some families are starting to fear that higher wealth taxes are very much on the table, even after taxes went up in the first two Budgets of this Government.
Dyall said it was not impossible that IHT and the gifting regime could feature in such discussions and suggested there was certainly willingness in the Treasury to target estates, as witnessed in the substantial changes to IHT reliefs and exemptions at the October 2024 Budget. “The capping of business reliefs is already in play, but it will be some time before we can see how that might increase IHT liabilities – and by then unspent pension assets will be subject to IHT too.”
Key Equity Release chief executive Will Hale insisted the slight reduction in IHT receipts in April compared to the same period last year shouldn’t distract from the longer-term picture.
“An inexorable increase in IHT receipts is anticipated due to a combination of rises in asset values and the government’s decisions at various recent fiscal events to maintain the tax-free thresholds at their 2020 to 2021 levels up to and including 2030 to 2031. This tax raid on wealth has major implications on financial planning in general and estate planning in particular with property equity and later life lending playing an increasingly central role.
“Rising house prices have been a major factor in the growth of IHT receipts and property wealth must now be a central consideration in efficient IHT planning. Unused defined contribution funds being in scope for IHT purposes from April 6 next year should cause all customers and advisers to reflect on wealth accumulation strategies and the sequencing of how assets are utilised in the decumulation phase.”
