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UK inheritance tax receipts soar above £8 billion
Inheritance tax (IHT) receipts have hit another record high according to the latest figures from HM Revenue & Customs (HMRC).
HMRC collected £8.2 billion from April 2024 to March 2025, a £750 million increase on last year’s record.
Data from HMRC, released on 23 April, revealed IHT receipts continue to soar, with higher receipts during this period being partially attributed to a small number of higher value payments.
Elsewhere, income tax, capital gains tax (CGT) and National Insurance Contributions (NICs) receipts for April 2024 to March 2025 were £486.9bn, £17.6bn higher than the same period last year.
While PAYE income tax and NICs receipts for this period were £423bn, a £15bn year-on-year rise.

Rising tax pressures on estates
The major increases in tax takes from IHT and other headline wealth taxes underpin the challenge faced by families looking to pass on inheritances to their families.
This is particularly pressing given pensions are set to be included in IHT calculations for the first time from 2027. In the past, the typical strategy was to leave pensions untouched, as they held the most tax-efficient status within an estate, but this may no longer be effective.
Evidence suggests families are already moving to mitigate this new liability, with a reported surge in six-figure house deposits gifted by families to children.

However, this is by no means a foolproof plan, nor is it a viable solution for families who don’t have children needing a large house deposit.

While gifting is allowed under IHT rules, within limits, the seven-year rule makes large gifts potentially hazardous depending on someone’s lifestyle and potential longevity. Under the seven-year rule you can gift any amount you like – but you must live for seven years after the gift was given in order for it to be exempt from IHT.
IHT is unfortunately riddled with complications and pitfalls. If you are concerned about potential liabilities or want counsel on the best approach to plan for the best outcomes, it is essential to consult with a financial adviser.

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