Inheritance tax (IHT) receipts reached a record £936m in September, up from £671m a year earlier, as frozen tax thresholds and rising asset values continue to bring more estates within the scope of the tax.
The HMRC data showed receipts for the first six months of 2026/27 totalled £4.72bn, up 7% from £4.39bn in the same period last year. The latest figures follow a fifth consecutive annual record in 2025/26, when IHT receipts reached £8.5bn.
However, collections will need to accelerate during the second half of the financial year to meet the Office for Budget Responsibility’s forecast of £9.5bn for 2026/27.
Simon Martin, head of UK technical services at Utmost, said: “Inheritance tax receipts continue to rise, with frozen thresholds and rising asset values continuing to draw more families within scope of the tax. This year could still be another record, but growth so far is running behind the pace the OBR expected.”
He added: “The reach of inheritance tax continues to expand, with thresholds now frozen until 2031, Business Property Relief reforms having taken effect earlier this year, and unused pension pots due to fall within the scope of IHT from April 2027.”
Samantha Warner, legal director at Winckworth Sherwood, said: “IHT revenues have continued to steadily rise due to the prolonged freeze on IHT thresholds and are set to further increase from 06 April 2027 when most unused pension funds will become subject to the tax.
“The nil-rate band (NRB) and the residence nil-rate band (RNRB) have not been adjusted for inflation or rising property values, and when pensions are added into the mix even more estates will become liable for IHT.”
With the Budget approaching, families are also watching for possible further changes to inheritance tax rules.
Lee Quinn, chartered financial planner at Titan Wealth, said: “A rise in inheritance tax receipts both this month and across the quarter reinforces that IHT is firmly in focus with just a week to go till the Budget. With receipts moving higher, families will be watching closely to see whether the Chancellor decides to make any further changes.”
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