Inheritance tax (IHT) receipts reached £5.8bn in the first eight months of the 2025/26 tax year, according to the latest data released by HM Revenue & Customs (HMRC).

That figure is £84m higher than the corresponding period last year and continues a steady upward trend that has been in place for more than two decades.

Earlier this year the Office for Budget Responsibility forecast that IHT would raise £9.1bn this current 2025/26 tax year. The latest figures coupled with the changes announced in last month’s Budget suggest that we are well on the way to meet these figures with four more months to go.

Isaac Stell, investment manager at Wealth Club, said: “The Budget confirmed that inheritance tax is already one of the government’s most dependable revenue raisers. At the start of this Parliament IHT brought in £8.3bn a year and by 2030/31 that figure is forecast to rise to £14.5bn – an extraordinary increase driven largely by frozen thresholds and a stealthy approach to raising revenues without major announcements that cause a stir. This confirms that the inheritance tax rules in place are already doing their job as one of the Treasury’s quietest – and most reliable – revenue raisers.

“The Nil Rate Band and Residence Nil Rate Band – £325,000 and £175,000 respectively – were already frozen until April 2030. The Budget extended that freeze by a further year, meaning they will now remain unchanged until April 2031. Had these thresholds risen with inflation, far fewer estates would be paying any inheritance tax at all.

“The same approach has been applied to reliefs. The new £1m allowance for 100% Business Property Relief and Agricultural Property Relief, due to take effect from next April (2026), will also be frozen until April 2031.

“While this still represents a significant restriction compared to the previous system, there was at least one welcome reversal. The government has confirmed that this £1m allowance will now be transferable between spouses and civil partners. That change removes the pressure many families felt to ‘use up’ the allowance on first death and brings BPR and APR more into line with other inheritance tax allowances.

“Pensions have also been caught in the inheritance tax net. From 6 April 2027, unspent pension pots will be brought within the scope of inheritance tax, removing their long-standing role as a planning tool.

“Taken together, these measures show a government that is still squeezing more revenue out of inheritance tax, but is running out of subtle ways to do it. Freezes, restrictions and quiet extensions in the form of Fiscal Drag can only go so far. There is only so much more that can be raised through this way. That reality applies well beyond IHT. At some point, if the government wants more money, it will have to be honest with voters and raise taxes openly and in doing so run the risk of losing votes in the next election.”