The Treasury’s intake from inheritance tax (IHT) totalled over £700m in April, a figure £85m higher than the same month last year.

New figures published by HMRC also revealed that the total for the opening month of the new tax year was also 7.2% higher than in 2023.

Last month, HMRC’s figures revealed a record intake for the 2023/24 tax year, with receipts from the tax totalling £7.5bn over the course of the 12 months – a figure up on £7.1bn in the year previously.

More estates have been dragged into paying IHT in recent years as a result of the nil rate band, also known as the IHT threshold, remaining frozen at £325,000 until at least April 2028. This is the amount up to which an estate does not have to pay IHT.

Investment manager at Wealth Club, Nicholas Hyett, said: “Contrary to popular belief, IHT doesn’t just affect the super-rich. Frozen tax brackets mean many who would not consider themselves wealthy will find themselves falling into the IHT bracket in future.

“Their standard of living hasn’t changed, indeed inflation means it might have gone backwards, but the Government now considers them to be wealthy enough to face IHT.”

Earlier this week the International Monetary Fund (IMF) suggested that Chancellor, Jeremy Hunt, should raise IHT by broadening its base to boost revenue.

Tax partner at Evelyn Partners, Laura Hayward, added: “Today’s tax receipt figures, coming on the back of the 2023/24 data that showed a 5.6% rise in the annual IHT take compared to 2022/23, show that fiscal drag is doing that job for IHT already by stealth.

“The IMF’s IHT-raising message is unlikely to gain much traction in the current Government. The last time IHT was making policy news was when speculation had it being cut or even abolished at the autumn statement. But a hawkish sentiment on IHT could find more receptive ears should there be a change of Government.

“Even if thresholds and rates just remain frozen, the IHT net will be cast much wider and draw in families across the UK with fairly modest levels of wealth in real terms.”

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