Inheritance Tax receipts hit new highs – why planning matters more than ever

HMRC figures* show the 2024/25 tax year saw a record £8.2bn raised in IHT, a £800m increase on the previous tax year. The new tax year kicked off in the same vein with the Treasury collecting £780m in IHT in April 2025 alone, up £97m from April 2024 – making it the second-highest monthly IHT total on record.

The OBR’s Spring Statement forecast, outlines expected IHT revenues of £9.1bn in 2025/26, rising to over £14bn by 2030. The uptick can be attributed to rising property and asset values, alongside frozen thresholds, which are combining to pull more households into the IHT net and accelerating the mainstreaming of IHT as a planning concern.

Since thresholds were frozen in April 2022, IHT receipts have surged by more than 21%, leaving many estates facing tax bills in the six-figure range that would have been unlikely just a few years ago.

Planning ahead pays off

These record figures are prompting more people to take action, using options like gifting, exemptions, trusts and pension planning to reduce potential liabilities. With IHT impacting more families than ever before, careful planning can make a significant difference to what loved ones inherit.

*HMRC, 2025

Tax treatment varies according to individual circumstances and is subject to change.

Inheritance tax planning, trusts, tax planning, and estate planning are not regulated by the Financial Conduct Authority.

Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. July 2025

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