Inheritance tax (IHT) receipts have increased by £200m year-on-year in July, taking the amount collected in IHT to £2.8bn in the current financial year.

HM Revenue and Customs (HMRC) revealed that this amount was collected between April and July 2024, with increases in the amount of IHT collected being a result of higher volumes of wealth transfers following recent 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 Office for Budget Responsibility (OBR) has predicted that IHT receipts will continue to rise and has forecast that the tax take will reach £9.7bn a year by the 2028/29 financial year, having reached a record £7.5bn total in 2023/24.

Specialist financial adviser at Wesleyan Financial Services, Jonathan Halberda, said: "We’re seeing growing demand for inheritance tax advice as more and more estates are pulled into the tax net. And we’re seeing more younger people looking for help too as they try to plan early.

"A common concern people have with inheritance tax planning, particularly if they’re doing it while they’re still relatively young, is how to maintain control and balance between what they pass on and what they keep.

"The good news is there are financial strategies you can use to get this balance right. Loan trusts, for example, enable you to invest a chunk of capital for a period of time. This eventually returns to your estate, meaning you get to use it in the future, but any gains while it’s invested go straight into a trust for your loved ones, which don’t count towards IHT."

The new figures are the first under the new Labour Government.

Analysts have stated that although the Government has ruled out increasing taxes on "working people", it could mean that IHT is a target for additional revenue in the Autumn Budget.

Group communications director at Just Group, Stephen Lowe, said: "Another month and another boost for the Treasury from IHT. But with the Autumn Statement in two months’ time, it seems inevitable that the Chancellor will at the very least run her slide rule over IHT to see if it’s a way to raise more revenue.

"The combination of frozen thresholds and property price rises are already driving a record IHT take, with receipts doubling compared to 2009 when the tax-free threshold was frozen. We will have to wait and see if Rachel Reeves decides that IHT can work even harder for the Treasury."

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