Inheritance Tax (IHT) receipts for April to July 2025 were £3.1bn, which is £0.2bn higher than the same period last year, according to the latest figures from HM Revenue & Customs (HMRC).
As Evelyn Partners head of estate planning Ian Dyall points out, the July figure means that inheritance tax revenues for this financial year so far are running about 6.9% ahead of the same period last year.
“Monthly receipts data reliably shows how fiscal drag is bringing more wealth into the scope of IHT, but the numbers that really matter for wealthier households are those showing the overall state of the public finances, because that’s what prompted last year’s Budget overhaul of IHT rules, and it’s not unthinkable that the transfer of wealth will be on the table again at the next Budget.
Dyall highlighted that the dilution of business and agricultural property reliefs doesn’t come into force until next April, and the inclusion of unspent pension assets in estates doesn’t occur until April 2027, so we won’t see how much money they bring in through the Treasury door until well after those dates.
Key Advice & Air chief executive Will Hale also commented on the consistent rise in IHT receipts.
“This continues a significant upward trend, with receipts increasing by more than 50% over the past five years and 2025 set to be a record year in terms of taxes raised through this mechanism.
“Furthermore, announcements around the inclusion of pension funds within the IHT regime, musings around the potential for a limit to be applied on lifetime gifting and continued house price inflation means that the government is looking at death as key focus for boosting public finances moving forward.
Hale warned that many people who would fall beneath the traditional definition of ‘high-net worth’ are now sleep-walking into a situation where their estates will be subject to significant IHT charges.
Last month, HMRC revealed that the total sum collected in inheritance tax had more than doubled over the past decade from £3.8bn in 2014/15 to £8.25bn in the past tax year.
