's (HMRC) latest figures show that IHT receipts recorded a total of £3.1 billion ($4.16 billion) for the first four months of 2025/26, an increase of £229 million (8 per cent) compared with the same period in 2024/25 (£2.8 billion). 

The current IHT allowance, which has been frozen at £325,000 for 16 years, will remain frozen for another five years until 2030, making more people liable to paying IHT. The £175,000 residence nil rate band hasn’t changed since 2020. 

The data also clarifies that the UK has collected £732 million in CGT over the four-month period, rising 11 per cent or £75 million in comparison with the same period in the previous financial year (£657 million). CGT receipts are estimated to hit £25.5 billion by 2029/30 – nearly twice the current levels.

The figures come ahead of the release of the Autumn Budget when further tax increases are expected. One consideration is abolishing of the “seven-year rule” which enables gifts to be exempt from IHT seven years before someone dies. This would squeeze the wealth of the UK’s middle class still further, who are already being hit by the freeze in IHT thresholds at £325,000. See more commentary here. There have also been suggestions of taxes on property transactions and an annual property tax on high-value homes – a move likely to cause controversy among the kind of home-owners who typically form important sections of the electorate. The ruling Labour Party is polling behind the upstart Reform UK party. 

Here are some reactions from wealth managers to the figures.

Simon Martin, head of UK technical services at Utmost Wealth Solutions
"Inheritance tax is an increasingly lucrative revenue stream that is now delivering all-time high totals for the Treasury year after year – and this financial year is currently firmly on track for another record. Given the reforms already announced to the IHT regime alongside the ongoing freeze to thresholds, we would expect more and more estates to tumble into the IHT tax net.

“With public finances under strain, given the rumours currently circulating, it would appear increasingly likely that the Chancellor will look at the inheritance tax regime yet again at the upcoming Autumn Budget. A careful balance would need to be struck between further revenue-raising measures and any additional loss of confidence in the UK following some of the recently reported outflows of wealth. With further changes to be implemented over the coming two years, we continue to see strong and growing demand for financial advice. Families want to understand how the new rules may affect their estate planning amid a wider rethink of intergenerational wealth strategies.

“The increase in rates and tightening of the annual exemptions at the Autumn Budget is also expected to increase capital gains tax receipts by nearly 50 per cent in this 2025/26 tax year, reaching around £20 billion. The annual CGT Bulletin released by HMRC last month uncovered record property disposals in 2024/25 as taxpayers sold assets before the new regime was implemented, demonstrating the behavioural changes made as a result of the Budget. January will see the reporting of CGT incurred on all other asset sales, such as shares and non-residential property, in 2024/25 through self-assessment forms – hence the expectation of a bumper tax year in 2025/26.”

Ian Dyall, head of estate planning at wealth management firm Evelyn Partners
“The July figure means that inheritance tax revenues for this financial year so far are running at about 6.9 per cent ahead of the same period last year. Monthly receipts' data reliably shows that 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.

“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.

“However, it is well known that families, and especially wealthier ones, tend to take steps to mitigate significant tax increases and to change their behaviour, which raises the risk that the tax take disappoints. It’s doubtless this fear which could put – if the rumour circulated last week is to be believed – the gifting regime under the Chancellor’s spotlight this time around. One of the easiest ways for families to reduce the threat of larger IHT bills is to gift during lifetime, and as the seven-year rule allows unlimited amounts to be transferred and possibly leave the estate altogether, this is the natural escape route that the Treasury might seek to block off.

“One issue with such a step is that gifting might be a plus for other tax revenues and the economy. The forthcoming IHT rule changes are leading people to gift business assets and to start accessing their pensions, to spend as well as give away, which should lead to increased income and other tax revenues in the short term. Funds gifted to younger people are more likely to be spent and fed back into the economy, and in a roundabout way boost VAT and stamp duty land tax for instance. Maybe Treasury officials are not too worried about the short-term IHT receipts and more keen to get money moving out of tax-protected pensions?

“But this is still not going to raise the sort of sums that the public purse appears to need, certainly not in the short or medium term, so one wonders whether another move on IHT would be worth all the negative headlines.”

Jonathan Halberda, specialist financial advisor at Wesleyan Financial Services 
“With the government looking at more ways to balance the national books, there is growing speculation that they could look at ways of increasing IHT revenue even more. How to manage IHT exposure is the most common question that we’re receiving from clients. And what it really comes down to is good planning.

A few steps to consider include: 

1. Gift wisely
Handing over money or possessions during your lifetime can reduce the value of your estate for IHT purposes. You can give up to £3,000 a year to anyone tax-free, or unlimited amounts to your spouse or civil partner. Regular gifts from your income can also help, but remember, anything given in the seven years before death may still be taxed.”

2. Use trusts to ring-fence wealth
Placing assets in a trust means that they’re no longer part of your estate when IHT is calculated, but you still control who benefits, and when. Trusts can be highly effective, but they’re also complex, so expert advice is essential.”

3. Secure your partner’s position
Married couples and civil partners can transfer everything to each other tax-free, including property. Unmarried couples don’t get the same treatment, which is why, for some, formalising the relationship can make financial sense.”

4. Put your wishes in writing
A will ensures that your estate is distributed as you want, and helps you make full use of allowances. Without one, standard rules apply, which could mean a bigger bill and less control over who inherits.”