Inheritance tax (IHT) receipts climbed to £3.8bn for the period from April to August, a £100m rise on the same period last year.
It continues a persistent upward trend which is being driven by the frozen thresholds dragging more estates into the net each month.
The annual total has risen in each of the past five years, and hit a record £8.5bn for the 2025/26 tax year.
The situation has become highly politicised, with the Conservatives and Reform both indicating they would look at sweeping changes, or even abolition of the tax, if they gain power.
Chancellor John Healey’s first Budget, set for 28 October, is fast approaching, but so far there have been no steers on whether IHT will see any changes.
Pension assets will soon be brought into scope, with the measure announced in the 2024 Budget taking effect from next April.
Rachael Griffin, tax and financial planning expert at Quilter, said: “Inheritance tax continues its upward trajectory as frozen thresholds, rising property values and increasing levels of household wealth bring more families into scope.
“What was once viewed as a tax affecting only the wealthiest households is increasingly becoming a mainstream financial planning issue.
“Given the scale of the inheritance tax changes already due to come into force, as the inclusion of unused pension wealth comes within the scope of IHT from April 2027, it would be somewhat surprising to see this area targeted again at the Budge,” she added.
“The government already has a significant increase in future receipts effectively built into the system. However, Budget speculation is just that, and it is never wise to completely rule anything out.”
HMRC released capital gains tax (CGT) figures alongside the IHT update, which showed receipts for August 2026 were up slightly to £198m from £190m the previous year. The total take for April to August was £914m.
CGT is also under increased scrutiny with some suggesting a huge rise in the tax could feature in the upcoming Budget. This comes despite the fact that raising the CGT rate further would be likely to reduce tax receipts, as asset owners would delay selling until the rates become lower again.
“One of the more persistent Budget rumours is that the government could seek to align capital gains tax rates more closely with income tax rates,” Griffin noted.
“On paper, such a move could significantly increase the amount of tax due on investment gains and potentially deliver a sizeable boost to Treasury revenues.
“However, capital gains tax is one of the most behaviourally sensitive taxes in the system. Monthly receipts can be highly volatile and investors often have considerable control over when gains are realised.
“Faced with higher rates, some may accelerate disposals ahead of any changes while others may simply hold assets for longer or alter their investment behaviour altogether.”
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