Inheritance Tax Revenues Rise

By Marcus Perks, Independent Financial Adviser | Supportive Financial Planning.

New data from HMRC shows that inheritance tax (IHT) receipts continue to rise, with nearly £0.8 billion collected in April 2025 alone — £97 million more than in April last year. It’s a trend that shows no sign of slowing and serves as a timely reminder of the growing impact IHT can have on estates across the UK.

What’s Driving the Increase?

Several factors are behind the sharp rise in IHT receipts:

• A number of high-value payments made in September and October 2024, and again in April 2025.

• A general increase in asset values, particularly in the second half of 2024.

• The ongoing freeze on tax-free allowances, including the nil-rate band and residence nil-rate band.

For the 12 months to April 2025, HMRC collected £8.347 billion in IHT, up significantly from £7.585 billion the previous year.

Looking Ahead: IHT Forecasts from the OBR

The Office for Budget Responsibility (OBR) is projecting a continued climb in IHT receipts over the coming years:

• £8.4 billion in 2024/25

• £9.1 billion in 2025/26

• £10.0 billion in 2026/27

• £11.7 billion in 2027/28

• £13.3 billion in 2028/29

• £14.3 billion in 2029/30

Much of this growth is tied to policies introduced in the October 2024 Autumn Budget, such as:

• Applying IHT to inherited pension wealth.

• Reducing the scope of agricultural and business property reliefs.

• Extending the freeze on IHT thresholds until at least 2029/30.

These changes could leave many families facing significantly higher tax bills in the years ahead.

Why Inheritance Tax Planning Matters More Than Ever

With IHT thresholds frozen and property and investment values on the rise, more estates are being drawn into the tax net. Without proactive planning, families risk losing a substantial portion of their legacy to the taxman.

That’s why it’s essential to take advantage of all available reliefs, exemptions, and planning strategies — before it’s too late.

Speak to Us

At Supportive Financial Planning, we’re experts in inheritance tax planning. Whether you’re concerned about the future of your estate or want to explore your options for passing on wealth tax-efficiently, we’re here to help.

✅ Personalised advice tailored to you and your family.
✅ Strategies to reduce or even eliminate potential IHT bills.
✅ Friendly, jargon-free support from qualified professionals.

Don’t leave it to chance. Get in touch with Supportive Financial Planning today and secure more of your legacy for the next generation.

📞 Call us on 0345 337 3414.
📧 Email us at cliveperks@supportivefp.co.uk.
🌐 Or request a free consultation by clicking on our "schedule a call' button.

This article is for information only and does not constitute financial advice. Figures accurate as of May 2025. Image & Data Source: Techlink - Taxation: Inheritance Tax - Fundamentals.