The government’s inheritance tax (IHT) take increased by £134m year-on-year to £2.22bn in the first quarter of 2025/26, while its capital gains tax (CGT) receipts fell overall in 2024/25, according to the latest figures from HMRC.

It showed that IHT receipts increased from £2.09bn in the first quarter of 2024/25 to £2.22bn between April and June 2025.

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

The government’s CGT receipts also rose in Q1 2025/26, increasing from £474m in Q1 2024/25 to £567m in the first quarter of 2025/26, with CGT receipts estimated to hit £25.5bn annually by 2029/30.

However, annual CGT receipts have declined over the past two financial years, falling from £16.9bn in 2022/23 to £14.5bn in 2023/24 and to £13.1bn in 2024/25.

“The latest HMRC tax take data lays bare the impact of the government’s stealth tax strategy – and while it is lucrative in some areas, it is far from universally effective,” commented Quilter tax and financial planning expert, Shaun Moore.

“The government’s decision to slash CGT allowances and hike rates has backfired. CGT receipts have fallen sharply – from nearly £17bn in 2022/23 to £14.5bn in 2023/24, and now to just £13.1bn in 2024/25.

“What’s more, in the first six months of the year, CGT has raked in £11.8bn, compared to £13.5bn during the same period last year.

“The policy may have been designed to raise revenue, but it’s instead prompted behavioural shifts that have dented the tax take.”

Moore noted that this was particularly relevant amid renewed speculation about a wealth tax, as while taxing the wealthiest may sound politically appealing, the experience with CGT showed that people will change their behaviour or adjust their financial plans to mitigate the tax bills.

“A wealth tax could accelerate the exodus triggered by the abolition of non-dom status – undermining the very revenue it aims to raise,” he continued.

“IHT receipts, meanwhile, continue to climb. Between April and June 2025, IHT brought in £2.2bn – £0.1bn more than the same period last year.

“With nil-rate bands frozen until 2030 and property prices still elevated, more families are being caught in the IHT net, often without any deliberate wealth accumulation.”

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