Inheritance tax (IHT) receipts have fallen by £65m year-on-year in April to £700m, HMRC has revealed.

The first results of the new financial year follow a record-breaking year, when £8.5bn was collected in the 2025/26 financial year.

Looking ahead, IHT receipts are forecast to keep rising, with tighter IHT policies announced in 2024’s Autumn Budget expected to push collections to £14.5bn in the 2030/31 financial year.

This would mark a 67% increase in collections over a five-year period, according to data from the Office for Budget Responsibility (OBR).

Chief executive officer at Key Equity Release, Will Hale, said the slight reduction in IHT receipts "shouldn’t distract from the longer-term picture".

He added: "An inexorable increase in IHT receipts is anticipated due to a combination of rises in asset values and the government’s decisions at various recent fiscal events to maintain the tax free thresholds at their 2020 to 2021 levels up to and including 2030 to 2031. This tax raid on wealth has major implications on financial planning in general and estate planning in particular with property equity and later life lending playing an increasingly central role.

“Rising house prices have been a major factor in the growth of IHT receipts and property wealth must now be a central consideration in efficient IHT planning. Unused defined contribution funds being in scope for IHT purposes from 6 April next year should cause all customers and advisers to reflect on wealth accumulation strategies and the sequencing of how assets are utilised in the decumulation phase."

Tax and financial planning expert at Quilter, Rachael Griffin concluded: "This set of figures marks an important milestone, as it is the final April in which pension wealth remains outside the scope of IHT. From April 2027, unused pension pots will be brought within the taxable estate, fundamentally changing how wealth is assessed at death.

"That shift is likely to have a profound effect on future receipts. Pensions have long been one of the largest assets held outside the estate, and bringing them into scope significantly increase the number of people paying what was once a tax for the very wealthy.

"As a result, next tax year IHT receipts are expected to rise sharply, with these figures likely to look modest in hindsight. Combined with frozen thresholds and ongoing pressure from property values, the trajectory for IHT remains firmly upwards, placing even greater emphasis on early and proactive estate planning. Making use of the meagre but still useful gifting allowance and taking a holistic view of your wealth remains paramount."

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