Government IHT receipts rise in May while CGT take falls year-on-year

The government’s inheritance tax (IHT) receipts increased in May 2026, while its capital gains tax (CGT) take fell year-on-year, according to the latest figures from HMRC.

In May, the government collected £730m in IHT, up from £715m the previous month and an increase of £29m year-on-year.

IHT receipts remain at elevated levels following five consecutive years of record highs, with more estates being brought into scope amid frozen thresholds, while unused pensions being brought into the IHT regime from April 2027 is set to raise levels further.

HMRC’s IHT take in the 2025/26 tax year reached a total of £8.5bn.

“IHT continues to generate historically high tax revenues for the Treasury as frozen thresholds and rising asset values bring more families within scope of the tax,” said Utmost senior relationship manager, Mark Jephcott.

“The nil-rate band has remained unchanged at £325,000 since 2009 despite property prices increasing by more than 75 per cent over the same period.

“The Autumn Budget 2025 maintained this freeze until 2031, and the scope of IHT continues to widen following reforms to business property relief that came into effect on 6 April 2026 and with unused pension pots due to be brought within the scope of inheritance tax from April 2027.

“As a result, the number of estates expected to be caught by IHT is forecast by the OBR to almost double by 2030.”

Jephcott argued that while these measures were increasing tax receipts, they were making the UK a less competitive destination for entrepreneurs, investors and internationally mobile wealthy individuals.

HMRC’s latest update also showed that the government’s CGT receipts were £168m in May, down from £232m in May 2025.

While the May 2026 total was £8m higher than the previous month, CGT take in May is typically higher than in April.

“Although CGT receipts for May were lower than the same month last year, revenues remain at historically elevated levels following a record year for Treasury receipts,” Jephcott stated.

“The higher rates introduced at the Autumn Budget 2024, combined with fiscal drag, are drawing ever more individuals into the CGT net and are likely to drive a sustained increase in receipts over the coming years.

“While CGT continues to generate significant revenues for the Treasury, it continues to undermine the UK's competitiveness among internationally mobile investors and entrepreneurs.

“Increasing numbers are looking at relocating to jurisdictions that are more welcoming to wealth creators and offer more attractive tax regimes, risking leaving the UK with a smaller overall tax base.”

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