Inheritance tax (IHT) remains a concern for clients despite falling in August, experts have warned.
The latest figures from HMRC show IHT receipts in August 2026 totalled £598m, compared to the £658m recorded in August 2025 and down from the £868m published in July 2026.
However, year-to-date IHT receipts for the 2026/27 financial year now stand at £3.8bn, compared with £3.7bn at the same point last year.
Simon Martin, head of UK technical services at Utmost, pointed out that IHT revenues remain well above historical levels, with frozen thresholds and rising asset values continuing to draw more families within scope of the tax.
“The reach of inheritance tax is continuing 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,” he said.
“While these changes may boost Treasury revenues in the near term, they also raise broader questions about the UK’s competitiveness for entrepreneurs and wealth creators who have more flexibility than ever over where they choose to invest and build businesses.”
Lee Quinn, chartered financial planner at Titan Wealth, said it would be a mistake to read too much into one set of figures as monthly receipts can fluctuate and urged individuals to seek advice on how the rules affect them.
“The upcoming Budget adds another layer of uncertainty, and some people may understandably be tempted to wait and see whether the Chancellor announces further changes. But there is already enough coming down the track to make reviewing existing plans worthwhile,” he said.
“For many families, inheritance tax is increasingly becoming part of the retirement planning conversation too. The pension changes could affect which assets people draw on first, how much they choose to spend or gift during their lifetime and what they ultimately leave behind.”
Nick Henshaw, head of intermediaries distribution at Wesleyan, warned clients against making knee-jerk decisions in response to further updates on unused pension funds being brought within the inheritance tax net or speculation around potential changes to IHT at the Autumn Budget.
“Cashing in pensions, for example, can create other tax consequences,” he said. “The six-month milestone should instead be a prompt to review pension arrangements and estate plans, ensuring any decisions are considered as part of a client’s wider financial circumstances.”
