Inheritance tax (IHT) receipts collected in the six months to September increased by 10% (£396m) year-on-year, taking the amount raised to £736m, HM Revenue and Customs has revealed.

For the 2024/25 financial year, the current amount collected in IHT stands at £4.3bn.

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, having reached a record £7.5bn in 2023/24.

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.

Group communications director at Just Group, Stephen Lowe, said that it is "no surprise" that IHT receipts have continued to increase.

He added: "With thresholds frozen and property prices still climbing, more estates are being drawn into the scope of IHT."

The latest figures come ahead of the Autumn Budget on 30 October, where changes could be made to IHT in order to reach the Government’s £40bn fundraising target.

Head of savings policy at abrdn, Alastair Black, said: "Families will be closely watching the upcoming Autumn Budget for any changes to IHT with rumours rife that the Chancellor will look to raise tax on inheritances to help fill the now reported £40bn target.

"One of the more likely changes would be to bring pensions into IHT’s scope. But I doubt they will go to a full 40% charge as they won’t want to encourage consumers to use up their pension more quickly. It’s a balancing act. Further actual tax revenues could take a long time to come through so changing the gifting rules to simplify and shorten seem likely too."

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