The government’s inheritance tax (IHT) receipts have continued to rise, reaching £5.2bn in the first seven months of the 2025/26 financial year, the latest figures from HMRC have shown.

This represents a £160m, or 3 per cent, increase compared to the same period in 2024/25, with the Office for Budget Responsibility predicting IHT receipts to hit £9.1bn this financial year.

This would be the fourth consecutive record annual tax take from IHT for the Treasury, with its IHT receipts forecast to reach more than £14bn in 2029/30.

“IHT remains a goldmine for the Treasury and looks set to offer the Chancellor another bumper year with takings driven by rising asset prices, frozen thresholds and a tightening of the exemption regime announced at the Autumn 2024 Budget,” said Just Group director, Stephen Lowe.

“This trend of record-beating receipts looks set to continue given reforms announced at last year’s Budget are still to be implemented and rumours abound that the IHT regime will once more be in the Chancellor’s revenue-raising Red Box next Wednesday."

Evelyn Partners head of estate planning, Ian Dyall, added that the latest public finance figures will be watched closely ahead of the Budget, and while IHT receipts have continued to rise, IHT reliefs have not featured prominently in Budget speculation.

“IHT reforms announced at the last Budget, including bringing unspent pension pots into the scope of IHT from April 2027 and slashing agricultural and business property reliefs from next April, have yet to take effect,” he noted.

“The UK’s rather complex gifting regime did appear in early Budget speculation but whether or not the Chancellor decides to review it, families should do their own review – at least those building up significant IHT liabilities.”

HMRC’s latest data also showed that capital gains tax (CGT) receipts for October were £230m, bringing the government’s CGT take to around £1.36bn in the 2025/26 financial year so far.

This year-to-date figure is £62m (5 per cent) higher than same period in 2024/25, with CGT receipts estimated to hit £25.5bn a year by 2029/30.

“Just four years ago, the annual exempt amount stood at £12,300 compared to today’s £3,000, dragging many more people into paying the tax if they realise gains,” said Quilter tax and financial planning expert, Rachael Griffin.

“To add fuel to the fire, from 30 October 2024 the main rates of CGT on assets other than residential property and carried interest swung from 10 per cent and 20 per cent to 18 per cent and 24 per cent for basic and higher rate taxpayers respectively.

“Instinctively, these changes should have boosted CGT receipts, but today’s figures show the tax take has plummeted by nearly £1bn (£926m).

“This kind of drop underlines why a wealth tax is unlikely to be unveiled next week: more punitive measures can simply change behaviours rather than rake in more revenue. People sit on their hands rather than make disposals and create liabilities.

“Therefore, although some anticipate that the Chancellor may consider increasing CGT rates further, today’s figures make that decision less likely.

“The government has been clear that encouraging investment and wider participation in capital markets is a priority, and higher CGT would risk discouraging precisely that. With receipts dwindling, there may be little appetite to go further and compound the issue.”

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