Inheritance tax receipts reached £5.8bn in the first eight months of the 2025/26 tax year, highlighting the growing impact of a property-based wealth on tax bills.
Figures from HM Revenue & Customs show receipts are £84m higher than in the same period last year, extending a steady upward trend that has been in place for more than 20 years.
The Office for Budget Responsibility has forecast that inheritance tax will raise £9.1bn over the full 2025/26 tax year, a target that appears increasingly within reach with four months still to run.
The rise has been reinforced by measures confirmed in last month’s Budget, including the decision to keep the inheritance tax nil rate band frozen at £325,000 until April 2031.
FISCAL DRAG
As property values and asset prices continue to increase, fiscal drag is pulling more estates into the inheritance tax net, adding to the importance of long-term planning around housing and wealth.
Helen Morrissey, Head of Retirement Analysis, Hargreaves Lansdown, says: “Inheritance tax receipts continue to trend higher with receipts so far £84m higher than the same period last year.
“It looks like we are on track for another record year. It’s a tax that is increasingly on people’s radar after the announcement that pensions would be included in estates for inheritance tax purposes from 2027.
“It will drag a lot more families into paying this tax and we can expect people to spend time in 2026 thinking about what they can do to manage their tax bill.”
