The government raked in a record £4.4bn from inheritance tax (IHT) over the past six months as more families than ever were dragged into the net, new figures from the Treasury show.
The amount raised from April to September this year is up 2.3%, or £100m, on the same period last year and more than 50% over the past five years.
It comes ahead of planned changes to the IHT regime, with pensions due to come within the scope of the hated tax from April 2027, while business relief will only apply to the first £1m of assets from April next year.
The tax is predicted to generate £9.1bn for the Treasury in 2025/26 and £14bn by 2029/30.
Stephen Lowe, director at retirement specialist Just Group, said: “IHT continues to prove a treasure trove for the chancellor. Rising asset prices, frozen thresholds and a tightening of the exemption regime are all combining to drive ever-growing receipts.
“The Treasury now looks set to collect a fifth consecutive record annual haul. With further reforms that were announced at last Autumn’s Budget yet to be implemented, we can expect this trend to continue and grow.”
Advisers have reported seeing a rise in clients finding ways to avoid IHT, including using deeds of variation to save their kids from having to pay the tax on their inheritance in future.
