Inheritance Tax Receipts Still On The Rise

According to HMRC’s latest statistics inheritance tax (IHT) receipts for April 2024 to February 2025 were just under £7.6 billion, which is more than £0.8 billion higher than the same period last year, of just over £6.8 billion. And, for February 2025, receipts were £612 million, which is considerably higher than the receipts for February 2024 of £564 million.

This can mostly be attributed to rises in asset values, and the freezing of the IHT tax-free thresholds.

The above chart contains 12-month rolling receipts since March 2013. Receipts for the 12 months to February 2025 were £8.255 billion. This figure is considerably higher than the equivalent figure for the 12 months to February 2024, which was £7.502 billion.

The OBR’s latest Economic and fiscal outlook (EFO) – published on 30 October 2024 - forecast the following IHT receipts for the current tax year and future tax years: £8.3 billion for 2024/25; £8.7 billion for 2025/26; £9.5 billion for 2026/27; £11.2 billion for 2027/28; £12.2 billion for 2028/29; and £13.9 billion for the following year, 2029/30.

The higher forecasted IHT receipts are partly due to house and equity price increases and partly due to the policy changes announced in the 30 October 2024 Budget impacting IHT. These include charging IHT on pension wealth transferrable at death, limits to agricultural and business reliefs, and extending the freeze in nil-rate bands to 2029/30.

The current, and predicted future, high IHT receipts should serve as another reminder of the importance of IHT planning and of making full use of any IHT exemptions and reliefs available.

We are here for you! Please don’t hesitate to get in touch to organise a complimentary financial planning review with one of our SOLLA accredited later life advisers. At this review we can discuss ways in which you can reduce or even eliminate the expected IHT payable by your family. Call 0117 3636 212 or email office@haroldstephens.co.uk