Inheritance tax (IHT) receipts for the government were up £84m year on year to £5.8 billion in the first eight months of the 2025/26 tax year, according to HMRC data out today.

The figure continues the steadily rising trend seen over the past few years which is set to result in an "extraordinary" increase in IHT by 2030/31.

HNW investment firm Wealth Club says the IHT trend has been evident for “more than two decades.”

The Office for Budget Responsibility has forecast that IHT would raise £9.1 billion this current 2025/26 tax year.

With IHT set to be applied to unused pensions from April 2027, the trend is set to continue although this does not take into account tax mitigation strategies some advisers are being asked to implement and likely to be in place from 2027. Many advisers have recently reported a surge in enquiries from worried clients.

Industry experts said that that it was clear the direction of travel on IHT taxation was upwards and also that more estates will likely be dragged into the IHT net as the government fails to raise thresholds.

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 £8.3 billion a year and by 2030/31 that figure is forecast to rise to £14.5 billion – an extraordinary increase driven largely by frozen thresholds and a stealthy approach to raising revenues without major announcements that cause a stir.”

The Nil Rate Band and Residence Nil Rate Band – £325,000 and £175,000 respectively – were frozen until April 2030 but the Budget has extended that freeze by a further year, the Wealth Club said. This means they will remain unchanged until April 2031. This is set to drag more estates into the IHT net.

The new £1 million 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 but the government has confirmed that the £1 million allowance will now be transferable between spouses and civil partners.

Shaun Moore, tax and Financial Planning expert at platform and wealth manager Quilter, said: “HMRC’s latest tax receipts highlight a tax system that is increasingly being shaped by design choices rather than short-term fixes. With the Budget now behind us, it is clear that frozen thresholds are no longer a temporary measure but a central part of how revenues are being raised.”

He pointed out that Income Tax and National Insurance receipts for April to November totalled £309.6bn, an increase of  £32bn on the same period last year. As a result, while headline tax rates have been left unchanged, the share of income being taxed continues to rise.

He added: “From 2027, pensions are due to be brought into scope for inheritance tax, significantly expanding the tax base at the same time as thresholds remain unchanged. For many households, pensions now represent one of the largest components of wealth, meaning future liabilities could be far larger than people expect.”

“While the detail of any future reform remains uncertain, the direction is clear: more estates, over a longer period, are likely to face inheritance tax.

Samantha Warner, legal director at law firm Winckworth Sherwood, said: “The nil-rate band (NRB) and the residence nil-rate band (RNRB) have not been adjusted for inflation or rising property values, which means more estates are becoming liable for the tax as asset values increase. It remains a persistent and unavoidable inheritance tax planning issue, and one that should not be ignored.”

Simon Martin, head of UK technical services at Utmost Wealth Solutions, said: “By extending the freeze on Inheritance Tax nil-rate bands and allowances at the Autumn Budget 2025, more estates are likely to fall within the scope of IHT over the coming years. Combined with the significant structural reforms announced at the Autumn Budget 2024, Inheritance Tax looks set to remain an increasingly important and reliable source of revenue for the Treasury for the foreseeable future.

“That said, it was welcome to see relatively limited further tinkering with the regime in the recent Budget. Stability of tax legislation gives families and advisers greater certainty, allowing them to plan more effectively in what is already a complex and long-term area of Financial Planning.”