Inheritance tax receipts have continued their sharp upward move, with figures released by HMRC showing £800m was paid in April.
The figure is £97m higher than the same period last year, and puts the numbers on track to break last year’s record annual take of £7.5bn.
The rise is being driven by the thresholds being frozen as the value of estates rises. This means more and more people are dragged in, and therefore would benefit from tax advice.
Ian Dyall, head of estate planning at Evelyn Partners, said: “The 2025/26 financial year opens where the previous one left off, with a predictable and substantial annual rise in inheritance tax receipts.
“What has stirred up some interest in the government’s intentions for IHT, aside from those announced at the October Budget, is the memo from the deputy PM to the chancellor leaked this week.
“That called for, among other tax rises, IHT relief on AIM shares to be removed altogether, which would go further than the current cut to 50% due for April 2026, and would save the Treasury £1bn,” he continued.
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“Whether this suggestion carries any weight with the chancellor is unknown, but with the PM also rowing back on cuts to the Winter Fuel Allowance this week, questions are bound to arise around tax if the fiscal outlook doesn’t improve before the Autumn Budget.
Tim Snaith, partner at Winckworth Sherwood, added: “IHT revenues continue to steadily rise due to the prolonged freeze on IHT thresholds. The nil-rate band and the residence nil-rate band have not been adjusted for inflation or rising property values, which means more estates are becoming liable for the tax as asset values increase.
“It remains a persistent and unavoidable inheritance tax planning issue, and one that should not be ignored. To avoid unexpected financial burdens, it is crucial for individuals to regularly review their wills and estate planning, with professional legal advice, to manage their wealth efficiently.”
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