Inheritance tax (IHT) receipts hit £3.7bn for the first five months of the 2025/26 financial year (April to August), new figures show.
HMRC data shows receipts for the period rose 5% compared with the same period in 2024/25, an increase of £190m. IHT is now predicted to generate £9.1bn for the Treasury in 2025/26 and more than £14bn by 2029/30.
It comes amid reports that pension withdrawals have shot up over the past year as families look for ways to shield their pensions from IHT from 2027. Recent data from the Financial Conduct Authority (FCA) shows the amount savers withdrew from their pensions jumped by 36% to £70.9bn in 2024/25, up from £52.2 billion the previous year.
Stephen Lowe, director at retirement specialist Just Group, said: “Today’s IHT figures prove the two certainties in life – death and taxes. And, with rising asset prices, frozen thresholds and last year’s reforms IHT looks set to deliver a bumper tax take for the fifth year in a row.
“As the chancellor continues to feel the fiscal pressure, and having ruled out hikes on major taxes, she will want to explore all her options to raise revenue. Given IHT targets those who are wealthiest in society, it’s entirely possible that it will once more be in the chancellor’s sights.”
