HMRC recovered more than £1.36bn in unpaid inheritance tax (IHT) from investigations over the past five years, figures obtained by NFU Mutual have revealed.

The amount of IHT recovered following investigations was £247m in 2024/25, down 13% from £285m in the previous year, but the total amount of IHT collected reached a new annual high of £8.5bn in 2025/26.

HMRC investigates estates where it suspects inheritance tax has been underpaid through errors, omissions or the undervaluation of assets. NFU Mutual said investigators can scrutinise bank statements, insurance records and other financial information to identify undisclosed assets, gifts that remain subject to inheritance tax rules and high-value possessions omitted from estate valuations.

With the £325,000 nil-rate band and the £175,000 residence nil-rate band frozen until 2031, and pensions set to be included in the IHT calculation from April 2027, the mutual insurer said more families will be caught in the net with ever increasing bills for those affected.

Sean McCann, chartered financial planner at NFU Mutual, said: "The revenue recovered through these investigations is significant and the rising value of assets and the potential sums at stake would appear to justify HMRC spending more time looking at individual cases. Inheritance tax remains one of the most feared and least understood taxes."

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