Inheritance tax (IHT) receipts reached £7.1bn in the first 10 months of the 2025/26 tax year – £100m more than the same period last year according to figures released by HM Revenue & Customs.
The increase continues a steady upward trend in IHT takings. The Office for Budget Responsibility has forecast that the tax will raise £9.1bn this year, suggesting the government remains on track to meet its target with two months still to run.
Rising receipts reflect a combination of frozen thresholds and growing asset values, particularly in residential property.
The nil-rate band remains at £325,000, with the residence nil-rate band held at £175,000, levels unchanged for several years despite significant house price growth.
INVESTIGATIONS INCREASING
At the same time, HMRC investigations into potential underpayment are increasing, with more than 14,000 bereaved families reviewed since 2022–23.
Isaac Stell, Investment Manager at Wealth Club, says: “The government has made a pig’s ear of inheritance tax reform.
“Crackdowns on farmers and business owners proved unpopular and ultimately unworkable, forcing a partial retreat on relief thresholds.
“But years of frozen allowances, combined with new rules that will bring pensions into the scope of IHT, mean more ordinary families, not just the wealthy, are being pulled into the tax net.
“At the same time, HMRC’s tougher enforcement is adding further pressure at what is already a difficult time for bereaved families.
“With the tax base widening and sharp ‘cliff edges’ in the relief system still in place, proactive planning and accurate reporting have never been more important.”
