Inheritance Tax (IHT) receipts totalled £936m in September 2026, according to HMRC data.
This marked a large jump from the £671m recorded in September 2025 and beat the £871m recorded in June 2026.
Receipts for the first six months of the 2026/27 financial year have reached £4.72bn, versus £4.39bn at the same point last year,
The numbers put HMRC on track to take in record annual IHT receipts for the sixth year in a row as more estates are continually puled in by frozen thresholds.
The Office for Budget Responsibility (OBR) has forecast full year IHT receipts of £9.5bn for 2026/27, up from the £8.5bn collected in 2025/26
From next April, unspent pension pots will further pump the figures up, with no indications the government will do a u-turn on this in next week’s Budget.
Further changes to IHT are a possibility, but there have been no strong indications of what Chancellor John Healey has in mind so far, if anything.
With the public finances very stretched already, it is unlikely IHT will be cut in any form, despite the Converatives applying pressure by promising to remove family homes from IHT if they are elected.
Simon Martin, head of UK technical services at Utmost, said: “Inheritance Tax receipts continue to rise, with frozen thresholds and rising asset values continuing to draw more families within scope of the tax.
“The reach of IHT continues to expand, with thresholds now frozen until 2031, Business Property Relief reforms having taken effect earlier this year, and unused pension pots due to fall within the scope of IHT from April 2027.
“With the Budget next week, families and wealth creators will be watching closely for further changes to the tax system”, he continued.
“The changing and increasingly complex tax landscape reinforces the value of good financial advice and legacy planning in helping families understand their situation and navigate the system with confidence.”
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Nicholas Smith, head of tax at Kinbrook Group’s Duncan & Toplis, added: “IHT continues to generate growing revenues for the Treasury, with frozen thresholds and rising asset values bringing more families into the tax net.
“With the nil-rate band remaining unchanged until at least 2031, estates that may previously have fallen below the threshold are increasingly facing significant tax liabilities.
“The inclusion of most unused pension funds within the scope of inheritance tax from April 2027 will add further pressure, particularly for those who have traditionally relied on pensions as a tax-efficient way of passing wealth to the next generation.”
