Receipts for Britain’s “most hated tax” hit £5.2 billion in the first seven months of the tax year, figures have revealed.
His Majesty’s Revenue and Customs (HMRC) got £200 million more in inheritance tax (IHT) between April and October, compared to the same period in the previous tax year.
IHT, often dubbed the country’s “most hated tax”, has been on the rise for the last two decades.

Chancellor Rachel Reeves confirmed last year pension assets would be made liable for inheritance tax by April 2027.
Nicholas Hyett, investment manager at Wealth Club said: “The ‘hokey-cokey’ Budget is just days away, and recent IHT history provides the blueprint we expect the Chancellor to follow.”

He added: “The reality though is that the government is close to the bottom of the barrel where IHT is concerned. And in that too IHT is foretelling the fate of wider tax policy. Next year the government is going to find it can’t get any further with tinkering and threshold freezes. If it wants to raise more money it’s going to have to front up to the voter and visibly raise taxes – it’s just a shame there’s no death duty on political administrations, because the Treasury would be in for a windfall.”
IHT’s main nil-rate threshold has been frozen at £325,000 since 2009.

Mr Hyett said that can squeeze an extra £80,000 from an estate without the government having to “raise” taxes at all.
He warned: “The Chancellor is set to repeat the trick with various other tax allowances – including freezing income tax thresholds into next decade.
“Targeted IHT reliefs have come under attack in recent years – including business relief, agricultural relief and the alternative investment market. All of these changes are sold as closing loopholes and targeting the wealthy without affecting “working people”, never mind that they have been damaging for small businesses, family farms and UK capital markets. We expect the Chancellor to make a song and dance about targeting “special interests” again in the budget through salary sacrifice and some form of “mansion tax” – though in practice tinkering around the edges like this has profound knock-on effects, not least on activity in the housing market.”
The Office for Budget Responsibility (OBR) forecasts total IHT liabilities for 2024/25 will rise 11.6% on the previous year to £8.4 billion.
It estimated that receipts will potentially reach £14 billion by 2030.

Ian Dyall, Head of Estate Planning at wealth management firm Evelyn Partners, said: “While IHT receipts continue their predictable upward trend, IHT reliefs have not featured prominently in the months of speculation around possible tax-raising measures anticipated in the Autumn Budget.

“After all, IHT reforms announced at the last Budget, including bringing unspent pension pots into the scope of IHT from April 2027 and slashing agricultural and business property reliefs from next April, have yet to take effect.

“The UK’s rather complex gifting regime did appear in early Budget speculation but whether or not the Chancellor decides to review it, families should do their own review – at least those building up significant IHT liabilities.”