Inheritance tax receipts rise to record high in June – could they go higher?
Inheritance tax receipts for April 2026 to June 2026 were £2.3 billion, £0.1 billion more than the same period in 2025.
Inheritance tax (IHT) receipts reached record highs in the three months to June 2026.
Receipts between April and June totalled £2.3 billion, up £96 million from the same period in 2025 and a record high, figures published by HMRC today (21 July) show.
It comes as the IHT nil-rate band has been frozen at £325,000 until 2031, with rises in house prices and other assets, as well as pensions being included within people’s estates from April 2027, drag more people into paying the dreaded “death tax”.
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Shaun Moore, tax and financial planning expert at wealth manager Quilter, said: “While monthly figures can fluctuate, the longer-term picture remains one of rising tax exposure.
“Frozen thresholds and growing asset values continue to pull more estates into the scope of inheritance tax.”
How is inheritance tax changing?
Pensions will be part of an estate for IHT calculations from April 2027, while business relief and agricultural relief now face new restrictions.
Agricultural and business property reliefs for IHT have been capped at £2.5 billion since April 2026, following a government climbdown which would have seen the threshold at a lower £1 million. There is also the ability to transfer this threshold on first death to a surviving spouse or civil partner.
With Andy Burnham as prime minister, there could be further changes announced to the IHT regime.
Moore, from Quilter, said: “Burnham has previously argued for reform of wealth taxes and has expressed support for alternatives to the current inheritance tax system, although any significant changes would need to be carefully balanced against the government's wider economic priorities.
"There is already speculation about whether ministers could revisit aspects of estate, property or wealth taxation as they search for revenue. While such discussions are likely to continue, families should be cautious about making planning decisions based on rumours rather than policy. The reality is that major reforms often take time to develop and implement.”
We reveal how to navigate the inheritance tax paperwork maze in nine clear steps in another article.
How to cut your inheritance tax bill
You can only plan based on the current tax system and some allowances remain.
Assets can be inherited by a spouse tax-free and leaving money to charity can also reduce your IHT liability.
You also receive a £3,000 annual allowance each year, meaning gifts up to this value are not liable for IHT.
Gifts over this size can fall outside the scope of IHT if made seven years or more before your death, with IHT owed on gifts made within seven years based on a sliding scale.
You can also make regular gifts of any size IHT-free if made out of “surplus income” – money transferred to someone not from savings or investments.
