The government’s inheritance tax (IHT) and capital gains tax (CGT) receipts increased year-on-year in the first four months of the 2025/26 financial year, HMRC’s latest figures have shown.

IHT receipts totalled £3.1bn in April – July 2025, an increase of £229bn, or 8 per cent, compared to the same period in 2024/25.

This continues the trend of rising IHT receipts amid frozen nil rate bands and increasing property prices.

CGT receipts also increased in the first four months of the financial year, rising by £75m, or 11 per cent, year-on-year to £732m.

However, the amount of CGT collected in July was 12 per cent lower than July 2024, totalling £165m last month.

Annual CGT receipts were estimated to almost double from the current level to £25.5bn a year by 2029/30.

Commenting on HMRC’s data, Utmost Wealth Solutions head of UK technical services, Simon Martin, said: “IHT is an increasingly lucrative revenue stream that is now delivering all-time high totals for the Treasury year after year – and this financial year is currently firmly on track for another record.

“Given the reforms already announced to the IHT regime alongside the ongoing freeze to thresholds, we would expect more and more estates to continue to tumble into the IHT tax net.

“With further changes to be implemented over the coming two years, we continue to see strong and growing demand for financial advice. Families are looking to understand how the new rules may affect their estate planning amid a wider rethink of intergenerational wealth strategies.

“The increase in rates and tightening of the annual exemptions at the Autumn Budget is expected to increase CGT receipts by nearly 50 per cent in this 2025/26 tax year, reaching around £20bn.

“The annual CGT Bulletin released by HMRC last month uncovered record property disposals in 2024/25 as taxpayers looked to sell assets before the new regime was implemented demonstrating the behavioural changes made around the Budget.

“January will see the reporting of CGT incurred on all other asset sales, such as shares and non-residential property, in 2024/25 through self-assessment forms hence the expectation of a bumper tax year in 2025/26.”

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