IHT receipts rise by £100m year-on-year; CGT take hits £194m in July

The government’s inheritance tax (IHT) receipts for April to July 2026 were £3.2bn, an increase of £100m from the same period last year, the latest figures from HMRC have shown.

In July 2026, IHT receipts totalled £868m, up from £844m in July 2025, although this was slightly lower than the £871m of receipts recorded in June 2026.

The data comes following a fifth consecutive record year for IHT take, which hit £8.5bn in the 2025/26 tax year.

Levels remain elevated as more estates are brought into scope of IHT through frozen thresholds, while unused pensions being brought into the IHT regime from April 2027 is set to raise levels further.

“The growth of IHT receipts has slowed in recent months, probably as a result of moderating property values in London and the south east over the last few years, which will have reduced the value of some estates,” said Evelyn Partners head of estate planning, Ian Dyall.

“But no one should let this lull them into complacency over the potential reach of IHT. We have not yet seen the effects of the restrictions to agricultural property and business reliefs that came in this April.

“And the scope of IHT will increase dramatically from next April, when unspent pension assets become part of savers’ estates, not least as bullish equity markets have boosted pension pots in recent years.”

Utmost head of UK technical services, Simon Martin, added: "Albeit down on last month, IHT revenues remain well above historical levels, reflecting the continued impact of frozen thresholds alongside rising asset values, which are bringing more families within scope of the tax.

"The scope of IHT continues to widen, with the threshold freeze extended until 2031, reforms to Business Property Relief taking effect in April this year, and unused pension pots due to come within the scope of IHT from April 2027.

"While these changes may increase tax revenues in the short-term, it raises wider questions about the UK’s attractiveness to entrepreneurs and wealth creators who are more internationally mobile than ever, particularly when other jurisdictions offer significantly more competitive tax regimes.”

HMRC’s latest update also revealed that capital gains tax (CGT) receipts increased to £194m in July 2026.

This represented an increase from £165m in July 2025 and from £192m in June 2026.

The 2025/26 tax year was also a record year for CGT receipts, which hit £22.2bn during the year, up from £13.7bn in 2024/25.

"CGT receipts remain elevated following a record year for the Treasury, with higher rates introduced at the Autumn Budget 2024 and the fiscal drag drawing ever more individuals into the CGT net,” Martin stated.

"While the OBR forecasts CGT tax receipts to make even larger contributions for the Treasury in the coming years, the increasing tax burden on gains from investments, property and business assets risks making the UK less attractive to internationally mobile investors, entrepreneurs and business owners, particularly when other jurisdictions are offering more favourable tax regimes.”

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