Inheritance tax (IHT) receipts increased by £800m in the 2024/25 financial year, with a record £8.2bn collected between April 2024 and March 2025, HMRC has revealed.

The annual figure comes after the Government’s tax collection agency found that IHT receipts had hit a new record intake of £7.6bn between April and February.

The Office for Budget Responsibility (OBR) has predicted that IHT receipts will continue to rise and has forecast that the total tax take will reach £9.7bn a year by 2028/29.

HMRC said that higher receipts since March 2022 are from a combination of volumes of wealth transfers following IHT-liable deaths, recent rises in asset values and the previous Government’s decision to maintain the IHT tax free thresholds until 2027/28.

The latest figures come after the Chancellor, Rachel Reeves, froze the IHT threshold in her Budget last October by a further two years to 2030. This applies to the nil-rate band at £325,000 and residence nil-rate band at £175,000, which had previously been frozen by the Conservatives until 2028.

Director at Just Group, Stephen Lowe, said: "It’s now four years on the trot that IHT has delivered record-breaking annual tax takes for the Treasury, on the back of a combination of frozen thresholds and rising property prices. As the saying goes – death and taxes are the two certainties in this world.

"This winning streak for the Treasury looks likely to continue for some time to come, with the changes announced at the Autumn Budget set to bring in even greater amounts over the rest of this decade and beyond."

Despite the expected increase in IHT receipts in the coming years following recent policy changes, some analysts have stated that the plans may lead to added confusion.

Specialist financial adviser at Wesleyan Financial Solutions, Jonathan Halberda, concluded: "Month-on-month, we’re seeing the impact of frozen thresholds that no longer reflect current asset values, alongside an increasingly complex system. Many who wouldn’t have faced a tax bill just a few years ago are now being caught out, while others don’t realise their estate is at risk until it’s too late to plan.

"Instead of simplifying the process, bringing pensions under the IHT umbrella in 2027 adds further complexity — a major change that we’re still waiting for more detail on.

"People need clarity, but in the absence of clear direction, many are unsure where to turn."

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