HMRC’s inheritance tax (IHT) receipts reached £7bn between April 2024 and January 2025, an 11 per cent increase on the same period in 2023/24, its latest data has shown.

The increase means that IHT receipts are on track for a record-breaking tax year, as estates in the UK rise in value and nil-rate bands remain frozen. The previous record-high tax take on IHT was £7.5bn in 2023/24.

Further changes, most notably bringing unspent pension pots into scope of IHT from 2027, mean that IHT receipts are forecast to increase further, up to £13.9bn in 2029/30.

Meanwhile, HMRC’s capital gains tax (CGT) receipts were £10.3bn in January, the month that typically drives the vast majority of CGT receipts due to filing processes.

This brings the year-to-date CGT take to £12bn, compared to £12.1bn for the full tax year in 2023/24 and the record-high of £14.4bn in 2022/23.

“January’s CGT figures highlight another fiscal revenue stream that is delivering record sums to the Treasury,” stated Utmost Wealth Solutions global wealth specialist, Marc Acheson.

“The surge in CGT receipts was likely driven by lots of people triggering gains ahead of the Autumn Budget. The increase in CGT rates and reduction of the lifetime limits for Investors’ Relief announced at the Budget are set to drive further increases in CGT totalling around £1.5bn through the rest of this tax-year and 2025/26.

“IHT is also delivering record receipts for the Treasury as property values soar while the thresholds remain frozen – a policy that has now been extended until the end of the decade.

"It now looks increasingly likely that IHT receipts for this financial year will surpass the 2023/24 record to deliver an all-time high haul for the Chancellor.

“Additional reforms, including IHT charges on pension wealth at death, restrictions on agricultural and business reliefs, the application of periodic and exit charges to excluded property trusts and the removal of the non-dom status which will subject those UK resident for over 10 years to a 40 per cent IHT charge on death on their global estate from April, will further increase the IHT tax-take over the coming years.

“We have seen a sharp increase in clients seeking professional advice to ensure they fully understand the implications of these reforms. With careful planning and the right advice, there are steps people can take to mitigate the impact of IHT and changes to capital gains.”

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