The government’s inheritance tax (IHT) receipts for the period April to October 2024 reached £5bn, HMRC’s latest figures have shown.

This represents an 11 per cent (£500m) increase compared to the same period last year and puts the government on course for a fourth consecutive year of record IHT receipts.

Meanwhile, capital gains tax (CGT) receipts also saw an increase for the April to October period, with the data showing they were around £180m higher than the same period last year.

These figures follow the Budget last month, which included a freeze on IHT thresholds, pensions being brought into scope of IHT from April 2027, reforms to Agricultural Property Relief and Business Property Relief, and CGT rate rises.

The Office for Budget Responsibility now estimates that the government will receive more than £50bn in IHT between 2024/25 and 2028/29, a 19 per cent increase of more than £8bn compared to the forecast in the Spring Budget in March 2024.

Quilter tax and financial planning expert, Rachael Griffin, said the consistent upward trend in IHT receipts underscored the government’s rationale for freezing IHT thresholds until 2030.

“However, incorporating pensions into the taxable estate from April 2027 will turbo charge this data,” Griffin stated.

“Farmers are also likely to start to bolster these figures as Agricultural Property Relief is made less generous. These changes mean more farmers may face higher IHT liabilities, potentially forcing difficult decisions about the future of family-owned farms.

“Similarly, the tightening of reliefs for AIM shares and Business Relief will also raise more for government coffers. These various changes are likely to drive greater urgency in estate planning, as taxpayers seek to navigate a landscape where traditional reliefs and exemptions are gradually eroded, and new financial plans need to be laid.

“CGT receipts saw an uptick in the months leading up to the budget reflecting the impact of pre-budget rumour mill and expected policy changes. In fact, receipts were around £180m more in the period from April to October 2024 compared the same period a year earlier.

“Some investors and property owners will have moved to offload assets ahead of the widely anticipated CGT increases announced in the recent budget. With tax receipts continuing to climb, the need for clear, transparent communication and strategic financial planning becomes ever more critical.”

Also commenting on the latest figures, Just Group group communications director, Stephen Lowe, said: “IHT has provided a steady stream of income for the Treasury and this year is on track to grow to new record levels for a fourth year in a row. These increases start to look modest compared to the forecast inheritance tax takes following the reforms announced in the Budget.

“With the thresholds frozen for another two years, any growth in property prices or other assets will drag more estates over the threshold, as reflected in the number of deaths subject to IHT now forecast to reach nearly 10 per cent by the end of the decade.

“These changes underscore the importance of people staying on top of the value of their estate and keeping an eye on the future. As a starting point, we encourage people to make sure they have an up-to-date valuation of their estate to help them understand if they are likely to incur IHT.

“Estate planning is complex and professional financial advice can be immensely helpful for people who want to manage their estate efficiently and pass on the maximum inheritance to loved ones.”

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