Inheritance tax revenue for April 2025 to February 2026 was £7.7 billion, which is £0.1 billion higher than the same period last year, HM Revenue & Customs data shows.
Evelyn Partners head of estate planning, Ian Dyal, commented:
“The monthly HMRC figures confirm that inheritance tax (IHT). continuing to rise is no surprise to those of us who work closely with families on long-term estate planning. The trend has slowed recently – perhaps reflecting slower house price growth in recent years – but still puts the Treasury firmly on course for another record year of total receipts in 2025/2026.”
He added: ‘The expansion of IHT is not the result of sudden shifts in prosperity, but rather years of budget problems. The zero interest margin has been frozen for many years, while the value of assets, especially real estate, continues to rise. Rising asset prices benefit investment and property holders, but the danger is that these households will face an unexpectedly large and rising tax bill for their beneficiaries upon death.
“From a planning perspective, more estates that would once have been considered comfortably below the IHT threshold are now creeping into the taxable area.”
Key Equity Release chief executive Will Hale said: Today’s HMRC data reinforces the role that inheritance tax plays as one of the government’s most under-the-radar but reliable revenue raisers. An increasingly tight IHT backdrop is changing the way advisers approach asset capture strategies, with the family home playing an increasing role in retirement income and intergenerational wealth transfer planning.”
He added: “With pensions set to fall into the IHT calculations in April, the old drawing order rules are being rewritten and ‘what pot do we spend?’ has become one of the most important questions families will explore with counselors.”