HMRC’s IHT receipts fall year-on-year in August while CGT take rises

The government’s inheritance tax (IHT) receipts fell year-on-year in August 2026, while capital gains tax (CGT) take rose over the same period, according to the latest figures from HMRC.

In August 2026, IHT receipts totalled £598m, down from the £658m recorded in August 2025 and from £868m in July 2026.

The data comes following a fifth consecutive record year for IHT take, which hit £8.5bn in the 2025/26 tax year.

In the 2026/27 tax year to date, IHT receipts have totalled £3.8bn, up slightly from the £3.7bn reported in the same period last year.

"Albeit down on last month, IHT revenues remain well above historical levels, with frozen thresholds and rising asset values continuing to draw more families within scope of the tax,” said Utmost head of UK technical services, Simon Martin.

"The reach of IHT is continuing to expand, with thresholds now frozen until 2031, Business Property Relief reforms having taken effect earlier this year, and unused pension pots due to fall within the scope of IHT from April 2027.

"While these changes may boost Treasury revenues in the near term, they also raise broader questions about the UK's competitiveness for entrepreneurs and wealth creators who have more flexibility than ever over where they choose to invest and build businesses."

Meanwhile, the government’s CGT receipts increased year-on-year in August 2026, from £190m to £198m.

They also rose compared to the previous month, increasing from £194m in July 2026.

However, tax year to date CGT receipts for 2026/2027 fell from £922m to £914m.

"One of the more persistent Budget rumours is that the government could seek to align CGT rates more closely with income tax rates,” commented Quilter tax and financial planning expert, Rachael Griffin.

“On paper, such a move could significantly increase the amount of tax due on investment gains and potentially deliver a sizeable boost to Treasury revenues.

"However, CGT is one of the most behaviourally sensitive taxes in the system. Monthly receipts can be highly volatile and investors often have considerable control over when gains are realised.

“Faced with higher rates, some may accelerate disposals ahead of any changes while others may simply hold assets for longer or alter their investment behaviour altogether.

"That means while aligning CGT with income tax rates could appear to raise substantial sums on paper, the eventual tax take would depend heavily on how investors respond. History suggests the reality is rarely as straightforward as the forecasts.”

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