Evelyn Partners  head of estate planning Ian Dyal commented:

“The monthly HMRC figures confirming that inheritance tax (IHT) receipts continue to climb come as no surprise to those of us working closely with families on long term wealth planning. The trend has slowed of late – perhaps due to slower house price growth in recent years – but still puts the Treasury firmly on track for another record financial year of total receipts in 2025/26.”

He added: ‘The expansion of IHT is not a result of sudden shifts in wealth, but rather years of fiscal drag. Nil rate bands have been frozen for many years while asset values, particularly property, have continued to inflate. Rising asset prices benefit the holders of investments and properties but the danger is that these households are sitting on an unexpectedly large, and rising, tax bill for their beneficiaries at death.

“From a planning perspective, more estates that would once have been considered comfortably below the IHT threshold are now creeping into taxable territory.”

Key Equity Release chief executive Will Hale said: Today’s HMRC data reinforces the role inheritance tax plays as one of the government’s most under the radar but dependable revenue raisers. An ever-tightening IHT backdrop is reshaping how advisers approach asset drawdown strategies, with the family home playing a growing role in retirement income and intergenerational wealth transfer planning.”

He added: “With pensions set to fall into IHT calculations next April, the old drawdown sequencing rules are being re-written and ‘which pot do we spend?’ has become one of the most consequential questions families will explore with advisers.”