Inheritance tax receipts rose to £0.8bn in April, a £97m rise year-on-year (14%), according to today’s data from HMRC.

Over the last 20 years, inheritance tax receipts have increased from £3.3bn to £8.2bn, with further increases expected.

The OBR estimates that nearly 10% of estates will pay death duties by 2030, with predictions that inheritance tax receipts will top the £8.2bn raised in 2024/25.

Financial Planners were not surprised that the recent rises have continued.

Shaun Moore, tax and Financial Planning expert at Quilter, said the compounding effect of frozen thresholds and shrinking reliefs made careful tax planning more important than ever.

He said: “With property prices remaining high and nil-rate bands still frozen until 2030, more families are being caught by IHT, many without realising until it’s too late. Upcoming changes to business and agricultural relief from 2026, and the inclusion of unused pensions in estates from 2027, mean this trend is unlikely to reverse any time soon.

“For those who are worried about IHT, gifting remains the best defence against it, but this should be weighed against your own needs.”

Andrew Zanelli, head of technical engagement at Aberdeen Adviser, said the firm's advisers were receiving questions from clients about IHT.

He said: “IHT receipts are only going in one direction and that’s up. The Government’s plans to bring pensions into the tax’s scope from April 2027 is one of the reasons for the continued rise and we’re still waiting for the details, which is making many people understandably concerned and in turn, advisers busy fielding queries.”

Ian Dyall, head of estate planning at Evelyn Partners, shared concerns that the Government plans to push its recent IHT changes further.

He said: “What has stirred up some interest in the Government’s intentions for IHT, aside from those announced at the October Budget, is the memo from the Deputy PM Angela Rayner to the Chancellor leaked this week.

“That called for, among other tax rises, IHT relief on AIM shares to be removed altogether, which would go further than the current cut to 50% due for April 2026, and would save the Treasury £1billion. Whether this suggestion carries any weight with the Chancellor is unknown, but with the PM also rowing back on cuts to the Winter Fuel Allowance this week, questions are bound to arise around tax if the fiscal outlook doesn’t improve before the Autumn Budget.

“Some in Government obviously see the passing on of estates as a legitimate target for tightening up the tax net, so whether or not there are any changes to IHT reliefs at the next Budget, it would be surprising if we got to the next election without any.”