Introduction
Inheritance tax (IHT) receipts have reached £6.6bn in the first nine months of the 2025/26 tax year, according to data published by HM Revenue & Customs (HMRC). This represents an increase of £200m compared with the same period last year, continuing a trend of consistent year-on-year growth in IHT revenues.
The government’s Office for Budget Responsibility (OBR) has forecast total IHT receipts for the current tax year will reach £9.1bn, with the government appearing well positioned to meet this projection as the fiscal year draws to a close.
HMRC Reports Growth in IHT Receipts
The latest HMRC statistics reveal that receipts from inheritance tax in the nine months to December 2025 have outpaced those in the same period of 2024. This increase aligns with a pattern seen over two decades, where the tax has generated progressively more revenue for the Treasury each year.
This financial year’s receipts reflect both stable policy factors and market-driven changes, such as rising property and asset values, which have expanded the number of estates subject to the tax.
Government Targets and Forecasts
The OBR’s forecast for inheritance tax in 2025/26 stands at £9.1bn. With three months remaining in the current tax year, the government’s collections suggest it is on course to achieve this outcome.
Budget statements and recent policy measures indicate no immediate reduction in the scope of the tax, with thresholds and principal allowances largely unchanged, despite occasional policy revisions.
Industry Perspectives on Tax Policy
Financial professionals continue to debate the government’s approach to IHT. Nicholas Hyett, investment manager at Wealth Club, highlighted that recent changes particularly regarding Agriculture Property Relief (APR) and Business Property Relief (BPR) have been contentious.
According to Hyett, the government reversed a planned reduction in relief for farmers and business owners in December 2025, but other aspects of IHT policy remain in place.
Effects of Frozen Thresholds and Policy Shifts
A key factor contributing to higher receipts is the ongoing freeze on tax thresholds. Professionals say that these static limits mean an increasing number of families are subject to IHT as asset values rise.
Policy changes impacting pensions have also played a role. Pensions that were once exempt from IHT if the holder died before age 75 may now be subject to tax, increasing the pool of taxable estates.
Property, Pensions, and Changing Tax Landscape
Property wealth remains a significant contributor to IHT liabilities, particularly among older homeowners. With estimates suggesting over £3.7 trillion in property equity is held by individuals over 55 years old,
inheritance planning is becoming increasingly complex. Shifts in pension rules and continued freezes on the nil-rate band have led to more estates being brought within IHT thresholds, further adding to the government’s revenue.
Final Summary
Inheritance tax receipts have continued to increase, reaching £6.6bn in the first nine months of 2025/26. This puts the government on track to meet the OBR’s full-year estimate, supported by policy factors such as frozen thresholds and changes to pension taxation.
Experts note that, while some policy reversals have occurred, many underlying tax drivers remain unchanged, and the overall burden on estates is likely to persist. Advisers are increasingly recommending that individuals review their estate plans and seek up-to-date guidance. For anyone managing inheritance or personal tax matters, tools such as the Pie app may help provide further insights.
